The choice between Expressions of Interest (EOI) and auction depends on property value and location. Auctions are effective in the eastern suburbs for broad-appeal homes, whereas EOI is better for prestige properties over $2 million. With Melbourne clearance rates currently at 59.1% (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO), private sales are increasingly favoured when clearance rates drop below 60% or for properties on the Mornington and Bellarine Peninsulas.
Current data shows a shift in buyer behaviour, with the Melbourne clearance rate falling to 59.1% for the week ending 11 April 2026 (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO). This first sub-60% result of the year increases the risk of properties passing in, making the choice of sale method critical to avoid price anchoring.
When to choose an auction
Auctions are most effective for properties in the eastern suburbs with broad appeal and a history of clearance rates above 65%. This method provides a definite sale date and transparency for sellers who have features that are difficult to price precisely. It remains the preferred choice for vendors seeking an unconditional sale.
The role of Expressions of Interest (EOI)
EOI is a strategic choice for prestige properties valued at $2 million or more and commercial assets. Vendors submit written offers by a closing date, allowing the seller to select the preferred bidder or enter negotiations. This provides more control over the timing and buyer selection than a public auction.
When private sale is the better option
Private sales are culturally dominant on the Mornington Peninsula and Bellarine Peninsula. This method is preferred when the buyer pool is small—such as properties priced above $3–4 million—or when dealing with interstate and overseas purchasers. It is also the recommended route for tenanted properties where inspection coordination is complex.
The pass-in risk
Approximately 35–40% of Melbourne properties at auction do not sell on the day. Buyers are currently anchoring their offers below the reserve price once a property passes in, knowing the vendor’s negotiating position has weakened. Establishing a firm walk-away price before auction day is necessary to manage this dynamic.
| Metric (Week ending 11 April 2026) | Value |
|---|---|
| Melbourne Clearance Rate | 59.1% (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO) |
| House Clearance Rate | 57.2% (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO) |
| Unit Clearance Rate | 59.1% (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO) |
| Median House Auction Price | $937,500 (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO) |
Frequently asked questions
What happens if my property passes in at auction?
Most passed-in properties sell within a few weeks through private negotiation. Under CAV rules, the highest bidder has the legal right to negotiate first. However, buyers often anchor their offers below the reserve price in this phase, as they perceive the vendor’s position to be weaker.
Should I sell via private sale on the Mornington Peninsula?
Yes, private sale is the culturally dominant method on the Mornington Peninsula. It is particularly effective if your property appeals to a narrow demographic or if you require flexibility to negotiate terms and price beyond a fixed auction date, which is common in coastal markets.
Is EOI better for luxury homes over $2 million?
Expressions of Interest are common for prestige properties over $2 million. This method offers the vendor greater control over buyer selection and timing compared to a public auction, though it provides less transparency than a standard private treaty sale.
How do clearance rates affect my choice of sale method?
When clearance rates are above 65%, auctions are generally favoured. However, when rates drop below 60%—as seen in the April 2026 data (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO)—the risk of passing in increases, making private sales a safer alternative for many vendors.
Questions to ask your agent
- Given current clearance rates in my specific pocket of the eastern suburbs, what is the statistical likelihood of this property passing in?
- If we choose an auction and the property passes in, what is the specific post-auction negotiation strategy to prevent buyers from anchoring below the reserve?
- Does the buyer profile for my property’s price point align more with the EOI method or a traditional private sale?
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.