Victoria’s new reserve price disclosure rules have coincided with a sharp drop in Melbourne auction activity, even as clearance rates edged higher across the capitals in October 2026.
Cotality’s weekly auction data showed 1,423 capital city homes went under the hammer over the past week. That was 18.6% fewer than the week before and almost 46% below the same week last year. Melbourne drove most of the fall, with 500 auctions, down 28.9% on the week and more than half on a year earlier. The capital city preliminary clearance rate lifted to a four-week high of 51.2%, from 48.8%.
Ray White, which reports results from its own network, also recorded a modest lift. Its 670 auctions nationally produced a clearance rate of 40.1%, up from 39.1%.
Ray White chief executive of performance and value Thomas McGlynn said the results were a reminder that “national figures don’t always reflect what’s happening in individual markets”.
On Cotality’s figures, Melbourne’s clearance rate improved to 56.2%, a four-week high, although on far smaller volumes. Ray White described a tougher week for Melbourne, as buyers and sellers worked through the new requirements.
Luke Banitsiotis, Ray White’s chief auctioneer for Victoria and Tasmania, said “the first week of declared reserves has created some unpredictability”. He expects conditions to settle once vendors, buyers, and agents adjust.
Sydney hosted the most auctions, with 574 homes going to market and a preliminary clearance rate of 54.6%, while Ray White’s Sydney rate jumped to 52.9%.
The Australian Capital Territory (ACT) posted the strongest early result at 65.9%, its best since mid-April. Brisbane remained the weakest capital at 31.5%, although this was an improvement on the low-20% results of the previous two weeks.
Homes are taking longer to sell. Ray White New South Wales chief executive Tim Snell said median time on market across the state’s network reached 41 days last week, up from 30 days six months earlier.
Ray White Frankston lead agent Ashley Weston, who has worked in real estate for 20 years, described current conditions as the toughest he has seen. He said: “The pace of price reductions is incredible.” He pointed to affordability pressures, four interest rate rises, the federal budget changes, and job uncertainty all hitting at once.
Those rate rises have taken a measurable toll. Cotality estimates the four increases since February have cut the borrowing capacity of a median-income household by almost $90,000, according to its latest data on stalling spring home sales.
For brokers, the bigger signal is what follows rates. The latest National Australia Bank (NAB) residential property survey ranked access to credit as the next biggest constraint on established home buyers after interest rates.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
