Saturday was the first auction day for properties that had to reveal their reserve a week earlier, and Melbourne turned on the weather for it. Perhaps the sunshine, combined with curiosity about how the new rules would play out, explains the big crowds at the auctions we attended.
Weekly Update
19th of October, 2026
The REIV recorded a 68 per cent clearance rate, down from 72 per cent last weekend and 83 per cent this time last year. Of 270 reported auctions, 183 sold and 87 were passed in, 36 of them on a vendor bid. Interestingly, nearly a third of all auction properties sold before auction day. Demonstrating some vendors may have been nervous about their reserve being tested in public and happy to take a sure thing over a risk.
On the ground, the market is still finding its feet.
We attended several metro auctions this weekend. All sold under the hammer, all above their advertised reserve. It’s a small sample, but perhaps buyers are arriving better prepared? However, there’s still plenty of confusion about the technicalities, especially around what can and can’t be done in the final seven days and on auction day.
A notable one is around what can happen on auction day. The vendor retains the right to accept an offer below their reserve if they believe it is in their best interests. Equally, even if the reserve is reached, the vendor can’t be forced to sell. However, refusing to sell above a revealed reserve would undermine the campaign, the vendor’s credibility and probably raise a few questions.
Getting market value right
Working out fair market value is proving hard for both vendors and buyers right now. Before one auction we attended we overheard a conversation that the property wasn’t a good buy at the reserve price and that $100,000 to $150,000 less than what they wanted was fair. Two bidders then pushed it $71,000 above the reserve. Whilst vendors need to be realistic about price, so do buyers. Growth has slowed, but the market hasn’t crashed, and the right property in the right location still draws competition.
With nine auction weekends left before Christmas, including Cup weekend, we expect a slight lift in auction numbers as people try to transact before the break. Otherwise, we expect conditions to stay much as they are, with no sudden price corrections in either direction.
Auctions Data: realestate.com.au