Auction remains a viable strategy for many Melbourne vendors in April 2026, particularly in the eastern suburbs where a strong auction culture exists. However, with clearance rates tracking in the low-to-mid 60% range, approximately 35–40% of properties are currently passed in (REIV). Vendors should carefully consider their property’s appeal, location, and establish a clear post-auction strategy, including a walk-away price.
Auction continues to be a powerful sales method when executed strategically. While vendor confidence has improved through late 2025 and early 2026, with listings up nearly 40% since December 2025 (Raine & Horne), recent RBA rate hikes have introduced caution and dampened buyer urgency (Domain’s Dr Nicola Powell). This means a more considered approach to auction is required.
When does auction work best now?
Auction is favoured for properties in suburbs with consistently high clearance rates – generally above 65%. It’s also effective for properties with broad buyer appeal, capable of generating multiple competing bidders. If you need certainty of a sale by a specific date, or your property has unique features making pricing difficult, auction can deliver. The eastern suburbs, with their established auction culture, remain particularly well-suited.
What’s happening with passed-in properties?
Approximately 35–40% of Melbourne properties listed for auction are currently passing in (REIV). While most sell within a few weeks via private negotiation, vendors need to be realistic. The highest bidder has the legal right to negotiate first under CAV rules. Buyers are anchoring their offers below the reserve price, recognising the vendor’s position is weaker than it appears. Establishing a post-auction strategy and a firm walk-away price *before* auction day is crucial.
How do seasonal factors play a role?
Spring (September–November) remains the peak selling season by auction volume and competition. Autumn (March–May) is the second-strongest. February marks a restart after the summer holidays. Buyer activity significantly reduces between mid-December and January. While winter (June–August) sees lower volume, the buyers present are typically motivated and serious. Importantly, buyer activity moderates with interest rate rises, becoming more price sensitive (LJ Hooker’s Mathew Tiller).
The clearance rate gap
The current market presents a challenge: clearance rates are not uniform across Melbourne. While some pockets, particularly in the eastern suburbs, maintain relatively strong results, others are lagging. This creates uncertainty about the likelihood of success at auction. A thorough assessment of local conditions, and a realistic reserve price, are essential to avoid a pass-in.
Frequently asked questions
Will a passed-in property sell for less than if it had sold at auction?
Generally, yes. Buyers negotiating after a pass-in know the vendor is more motivated to sell. They will likely anchor their offers below the reserve price. Having a clear walk-away price established *before* auction is vital to protect your interests. Expect a more protracted negotiation process.
Is auction still suitable for properties on the Mornington Peninsula?
Private sale is the culturally dominant method on the Mornington Peninsula. While auction is possible, it’s less common and may not generate the same level of competition. A private sale campaign allows for greater flexibility and targeted marketing to the Peninsula’s specific buyer demographic.
What if my property is priced above $3 million?
Properties priced above $3–4 million often benefit from a private sale campaign. The buyer pool is smaller, and a more discreet, targeted approach can be more effective. Auction may limit exposure to qualified buyers and potentially undervalue the property. A tailored marketing strategy is key.
How do the recent interest rate rises affect auction results?
The February and March 2026 RBA rate hikes have introduced caution into the market (Domain). While buyer activity hasn’t stopped, it has become more price sensitive. This means realistic pricing and a well-executed campaign are even more critical to achieving a successful auction outcome.
Questions to ask your agent
- Based on recent sales data for properties similar to mine, what is a realistic reserve price for auction?
- What is your specific strategy for generating buyer competition for my property, given the current market conditions?
- Can you outline a detailed post-auction negotiation plan, including a recommended timeframe and approach?
This article contains general market information based on data current
as at April 2026. It does not constitute financial, legal, or real estate
advice specific to your property or circumstances. For an appraisal and
tailored advice, speak with a Fletchers agent in your area.