SYDNEY — August 10, 2026—While the weekends have become synonymous with house selling in Australia, it is through the actions of auctioning agents on suburban streets, the excited paddle-waving, anxious sellers watching from the sidelines, and the price going higher, that make this event is unique.
However, now that excitement seems to lose its charm.
The reason for this lies in the changed attitudes of buyers, high borrowing costs, and the increased rates of the abandoning of auctions in favor of selling homes through private negotiations.
Although this downward trend is intriguing, it is important to note that Australia is one of the few countries that traditionally treated auctions as a common method for selling ordinary houses.
Property auctions in the USA handle various real estate types alongside foreclosures, while UK property auctions account for roughly 2% to 3.5% of total housing transactions but boast average sale success (clearance) rates between 65% and 80% when properties go under the hammer.
However, recent data presents a contrasting narrative.
According to SQM Research, property listings in Australia increased by 22.8% in the past twelve months. Nevertheless, the last year saw roughly a 20% decline in auction listings, which indicates sellers are making use of more private treaty sales given the evident decline of the property market for auctions.
Another data source, Cotality, also shows drastic numbers. In the four weeks that ended on the 28th of June, there were 6895 auctioned properties, which accounts for 30.3% of the sales in capital cities. However, auction clearance rates have declined from approximately 70% in September 2025 to below 50% in June and July 2026.
This decline is important because failed auctions negatively affect the negotiating power of the sellers.
Research by Sydney University and New South Wales University discovered that throughout the period spanning from 2007 to 2019 in New South Wales and Victoria, auctioned properties make only 0.7% more than properties sold via private treaty sales, and one in five properties sold at auctions turns out to be unsuccessful.
Incredibly enough, properties sold after unsuccessful auctions fetched prices approximately 1.3% below the prices of similar properties sold privately.
Does this finding mean that auctions are responsible for this increase in property prices in Australia?
Competition usually leads to lower prices, not higher ones, because rival sellers try to offer better deals to attract buyers. However, intense bidding can drive prices up if buyers take risks and overbid.
On the other hand, experts warn against generalizing auctions as the only reason for this increase in prices. The root of the issue could lie in the greater financialization of property whereby homes have become investments rather than places of dwelling.
Besides that, tax measures such as negative gearing and other tax concessions for capital gains have also contributed to the high prices of properties by promoting partnership-level investment.
The Victorian Greens proposed banning outdoor street auctions rather than outlawing all auctions entirely. Critics defend public auctions as a transparent pricing mechanism, arguing that increased regulation—such as disclosing reserve prices in advance—is preferable to a ban.
The property market in Australia may be shifting away from auctions, not ending them.
For many years the chant of auctioneers characterized the tremendous property boom that took place in Australia.
However, now, the decrease in the number of auction participants suggests that the auction is about to become a means of warning to Australians about the end of the golden age in the housing market.
