As we move into autumn 2025, Sydney’s auction season is revealing some interesting trends. This time of year is traditionally one of the busiest periods for real estate, and with plenty of properties going under the hammer, both buyers and sellers are closely watching market movements.
But what’s really happening in the market? And what does it mean for your next move—whether you’re buying, selling, or investing? Let’s break it down.
1. Clearance Rates Are Softening—A Sign of Market Caution?
While we’re still seeing a steady flow of properties heading to auction, the number of homes selling under the hammer has started to dip slightly.
– Last week, 71.4% of Sydney auctions resulted in a sale, down from 74.4% the previous week.
– Overall, auction volumes are down by 2.2% compared to this time last year.
– More properties are being passed in, meaning some buyers are holding back rather than jumping in with aggressive bids.
What this means for sellers:
If you’re planning to sell this autumn, a well-prepared campaign is more important than ever. Overpricing is risky—buyers are taking their time and negotiating harder post-auction. Well-presented, well-priced homes in strong locations are still moving fast, but buyers are less willing to compete fiercely on properties that need work or are priced too high.
What this means for buyers:
A softening clearance rate means less intense competition. If a property passes in at auction, this is your chance to negotiate directly with the seller rather than battling it out in a bidding war. Pre-approvals and flexible conditions can give you a strong advantage when making an offer.
2. Interest Rate Cuts & Buyer Hesitation—What’s Holding the Market Back?
In February, the Reserve Bank of Australia cut interest rates from 4.35% to 4.1%, a move that was expected to fuel demand in the property market. But so far, we’re not seeing an immediate surge in activity.
Why?
– Buyers are still cautious, waiting to see if further cuts happen.
– Affordability remains a challenge, especially for first-home buyers.
– Banks are still lending conservatively, keeping competition in check.
For property owners, this means you need to be realistic about pricing—buyers have more borrowing power, but they’re not rushing in blindly.
3. The Rising Costs of Property Ownership in Sydney
A major factor influencing the market right now is the rising cost of taxes and regulatory fees for property owners.
A new report reveals that buyers of house and land packages in Sydney are paying an average of $576,000 in taxes and regulatory costs alone—almost half the cost of a new build.
These rising costs are causing some investors to rethink their strategies, particularly when looking at rental yield versus long-term capital growth.
4. Are Sydney Property Prices About to Drop?
Some analysts are forecasting that Sydney and Melbourne property prices could dip by up to 5% in 2025. This would be the first notable price correction since 2022.
However, the story is different across Australia:
– Sydney & Melbourne may see a small drop due to high borrowing costs & affordability constraints.
– Brisbane, Perth, and Adelaide are still seeing growth, mainly due to housing shortages.
What does this mean for sellers? If you’re thinking of selling this year, pricing realistically and presenting your home at its absolute best will be key. Waiting for a price surge may not pay off in the short term.
The Bottom Line—What’s the Smartest Move This Autumn?
For sellers:
– Be strategic with your pricing—buyers are cautious, and overpricing could lead to a passed-in auction.
– Presentation matters more than ever—buyers will pay a premium for a move-in-ready home.
– If your property doesn’t sell at auction, negotiate smartly—there’s still strong demand, but it’s more measured.
For buyers:
– Now is the time to negotiate—with clearance rates softening, you may have more room to strike a deal.
– If a property passes in, don’t walk away—some of the best deals are made after the auction.
– Stay flexible & finance-ready—cash offers or shorter settlement terms can make you more competitive.
Final Thoughts
This autumn auction season is presenting both challenges and opportunities. While we’re not seeing runaway price growth, there’s still plenty of activity and movement in the market. If you’re thinking of buying, selling, or investing, now is the time to get expert advice and make informed decisions.
📩 Need insights on your specific property or market area? Let’s talk!
