Australian Home Auctions Fall as Rate Hikes Bite: What the Numbers Say

Australia's auction market slowed again last week. In the week to 18 October 2026, 1,423 homes went to auction across the capital cities, according to property researcher Cotality — 18.6% fewer than the week before and almost 46% fewer than the same week last year. The Business Times reported the slowdown, linking it to the run of rate hikes.

Below is our own summary of the figures, why they are moving, and what they mean for anyone in Singapore watching the Australian market.

The numbers

The preliminary clearance rate across the capitals rose to 51.2%, up from 48.8% the week before and the strongest early result in four weeks. That sounds like a recovery. It is a small lift on a much thinner market: fewer homes are being offered, and only about half of those are selling on the day. A year ago, roughly two in three auctions were clearing at this point in spring.

• Sydney — 574 auctions, 9.2% fewer than the previous week and 46.8% fewer than a year ago; 54.6% cleared.
• Melbourne — 500 auctions, down 28.9% on the week and 56.2% on the year; 56.2% cleared, its best early result in four weeks.
• Brisbane — 164 auctions; 31.5% cleared, the lowest of any capital.
• Adelaide — 119 auctions; 36.4% cleared, down from 46.8% a week earlier.
• Canberra — 52 auctions; 65.9% cleared, the highest of any capital and its strongest result since mid-April.

Perth held 13 auctions and Tasmania one. Cotality expects activity to ease further this week, with about 1,240 auctions scheduled across the capitals and only 489 in Melbourne — roughly 70% fewer than a year ago.

Why it is happening

Interest rates. On 29 September 2026 the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60%. It was the fourth increase this year, after February, March and May, and took the rate to its highest level since 2011. The board left the door open to further rises. September-quarter inflation figures are due on 28 October, a week before the next rate decision in early November. Higher repayments cut what buyers can borrow, and that shows up first at auction.

New auction rules in Victoria. For auctions and fixed-date sales from 16 October 2026, Victorian agents must publish the seller's reserve price at least seven days beforehand. If it is not published in time, the auction cannot go ahead. Cotality's research director Tim Lawless tied Melbourne's sharp fall in volumes to the rules taking effect. Sellers who would rather not name a reserve a week out can choose a private sale instead, which would keep auction numbers low for a while without saying much about underlying demand.

Tax changes aimed at investors. The May 2026 federal budget changed the capital gains tax discount and negative gearing settings, with the aim of cooling investor demand and favouring first-home buyers. In Cotality's latest monthly index, national home values were 5.2% below their March peak.

What it means if you are watching from Singapore

Most Singapore buyers cannot bid at these auctions. Australia bans foreign persons from buying established homes from 1 April 2025 to 30 June 2029. The May 2026 budget extended the ban, which was due to end in March 2027. Foreign buyers can still apply to buy new homes, off-the-plan apartments and vacant land, subject to approval, and state surcharges apply on top of stamp duty. Australian citizens are not caught by the ban; permanent residents living overseas should check their own position before bidding.

For those who can buy, the balance has shifted. With fewer homes going under the hammer and around half selling on the day, more properties are passing in and being negotiated afterwards. In Victoria, a published reserve now gives buyers a figure to work from a week before the auction — though the seller sets it, so it is a starting point, not a valuation.

Clearance rates move before prices. The next signals worth watching are the inflation figures on 28 October and the rate decision that follows.

Where we fit

We are a Singapore agency and we do not market Australian property, so read this as context, not a recommendation. If you are weighing an overseas purchase against a home in Singapore, we are happy to walk you through the Singapore side — what is available, what it costs per square foot, and the stamp duties that apply. See what we are marketing, or talk to us on +65 6677 5000.

Sources

Reported by The Business Times. Auction figures are Cotality's preliminary results for the week ending 18 October 2026, as published by Elite Agent; the year-earlier clearance rate and the March-peak comparison are Cotality data reported by Australian Associated Press. Rate decision: Reserve Bank of Australia, 29 September 2026, via CommBank Newsroom. Victorian auction rules: Consumer Affairs Victoria. Foreign buyer rules: Australian Taxation Office. Figures are current as at 19 October 2026. This article is our independent summary and commentary, not investment advice. Finest SRI is part of SRI Pte Ltd, agency licence L3010738A.