Melbourne's auction market held firm this weekend, with the Real Estate Institute of Victoria (REIV) recording a 71% clearance rate for the week ending 11 October 2026 — up one percentage point from 70% the prior week. That result stands in sharp contrast to a softening national picture, where combined capital cities recorded a preliminary clearance rate of just 44.4% according to PropertyUpdate/CoreLogic data — marking the second consecutive week the national rate has held below 50%.
- Victoria clearance rate: 71% (REIV final) — up from 70% last week
- Auctions reported (VIC): 383 | Sold: 271 (181 at auction, 90 before) | Passed in: 112
- National preliminary clearance rate: 44.4% (PropertyUpdate/CoreLogic) — down from 45.1%
- RBA cash rate: 4.60% — at a 15-year high since the 29 September 2026 rise
National Auction Snapshot: A Market Divided
Australia's combined capital cities preliminary clearance rate settled at 44.4% this weekend, down from 45.1% the prior week — and a full 22 percentage points below the same weekend last year, when the national rate sat at 66.7%. The volume story is equally stark: nationally, auction volumes are running around 30–40% below the same weeks in 2025, reflecting the combined weight of four RBA rate rises in 2026 and ongoing affordability pressure.
Yet Melbourne is telling a very different story. The REIV's 71% final clearance rate — compiled from reported results across Melbourne and regional Victoria — places our city well ahead of every other capital, and shows that the inner and middle-ring suburbs of Melbourne continue to attract genuine buyer competition even in a high-rate environment.
State-by-State Auction Results: 11–12 October 2026
| City / State | Clearance Rate | Prior Week | Same Week Last Year | Auctions |
|---|---|---|---|---|
| Melbourne (REIV final) | 71% | 70% | 86% | 383 reported |
| Melbourne (CoreLogic prelim.) | 60.5% | 59.5% | ~77% | 710 scheduled |
| Sydney | 52.8% | 60.0% | ~72% | 807 |
| Adelaide | 47.9% | 36.5% | ~93% | 147 |
| Canberra | 42.8% | 45.8% | ~77% | 75 |
| Brisbane | 17.8% | 23.7% | ~62% | 178 |
| National (combined capitals) | 44.4% | 45.1% | ~66% | ~1,917 |
Sources: REIV (Victoria final clearance rate, week ending 11 October 2026); PropertyUpdate/CoreLogic (all other states, preliminary figures). Year-on-year comparisons are approximate. Same-week last-year volume for Victoria was 936.
Melbourne in Focus: What the REIV Data Really Shows
The REIV's methodology counts only reported results — auctions where outcomes were confirmed — which typically produces a cleaner read on actual buyer competition than preliminary counts that include all scheduled but unreported auctions. On that basis, Victoria's 71% is meaningful: of the 383 reported auction results this week, 181 sold on the floor and a further 90 sold prior to auction day, with just 112 passed in.
The "sold before auction" figure of 90 is worth noting. When vendors are accepting pre-auction offers at this rate, it typically signals genuine buyer competition in the lead-up — buyers who don't want to risk losing a property at auction are moving early. That behaviour tends to be concentrated in tightly-held, owner-occupier suburbs where stock turnover is low.
IFG's core service suburbs — including Essendon, Moonee Ponds, and Coburg in Melbourne's inner north-west, and Keilor East and Taylors Lakes further west — are all in the corridor that has historically driven Melbourne's clearance rate above the CoreLogic aggregate. These suburbs attract strong owner-occupier demand, have limited new stock, and sit within accessible distance of the CBD, all of which insulates them from the demand destruction that higher rates cause in growth corridors and regional markets.
Volumes, however, remain a concern. Victoria reported just 383 auctions versus 936 in the same week last year — a 59% year-on-year decline. When fewer vendors choose to go to auction, those who do tend to be more motivated and realistic on price, which helps explain why clearance rates remain elevated even as rate headwinds persist.
What's Driving the Melbourne Market — and What It Means for Spring 2026
Three structural forces are shaping Melbourne's outperformance right now:
1. Tight supply creating competition floors. Melbourne's inner and middle-ring suburbs have below-average stock on market heading into spring. When buyers outnumber motivated vendors, clearance rates hold up even in adverse rate conditions.
2. The September RBA hike has reset buyer confidence but not extinguished it. The RBA's decision on 29 September 2026 to raise the cash rate to 4.60% — its highest since November 2011 and its fourth hike this calendar year — added approximately $76 per month to a $600,000 variable-rate mortgage. That genuinely reduces borrowing power. But Melbourne buyers who had already recalibrated to this environment are largely continuing to transact, particularly those who locked in a pre-approval before their settlement deadline.
This is why we always encourage clients to lock in a pre-approval early in their search — not just as a budgeting tool, but as a strategy to hold a rate assessment while the market moves. For those currently reviewing their mortgage, the 3 November RBA meeting is the next key date to watch.
3. The national average disguises Melbourne's relative strength. Brisbane's 17.8% clearance rate pulls the national average down significantly. That figure reflects genuine demand destruction from a combination of rate rises and a sharp affordability reset after Queensland's boom years. For investors comparing capital city opportunities, the Melbourne data tells a far more nuanced story about where genuine buyer competition still exists. If you are exploring commercial property opportunities, speak with your accountant about how the current rate environment affects your investment structure.
What These Results Mean for Melbourne Buyers and Investors
For first home buyers: A 71% clearance rate means the majority of auctions are selling — which means if you attend without a solid budget and pre-approval in place, you risk being outbid or underprepared. Melbourne is not a buyer's market, even in today's rate environment. The key strategic advantage right now is speed: access to a pre-approval that reflects your actual post-rate-rise borrowing capacity. Our home loan repayment calculator is a useful first step to ground your search budget before you start attending auctions.
For upgraders and investors: The 90 properties that sold prior to auction this weekend are a direct signal of buyer competition in the pre-auction window. If you are looking to buy in Melbourne's north-west corridor or in the inner suburbs, be prepared to move quickly when the right property appears. Waiting for rates to fall before purchasing is a strategy with material risk — Melbourne's listed stock may rise in spring, but cleared stock is moving before it hits the auction floor.
For landlord investors: Brisbane's 17.8% clearance rate deserves attention as a separate market signal. It speaks to the challenges of high-rate environments in markets that over-corrected upward. Victoria's commercial property market continues to offer opportunities for investors who can absorb current holding costs. Speak with your accountant on any capital gains or tax structuring questions before acting — we are happy to refer you to our professional network.
For those weighing a rate review: With the RBA's cash rate now at 4.60% and the next meeting not until 3 November, there is a clear window to review whether your current lender is competitive. We access a deliberately broad panel of bank, non-bank and specialist lenders — and a refinancing review costs you nothing to investigate. Enquiries are answered the same business day by a director.
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IFG's Take: What We're Seeing at the Coalface
Melbourne's 71% clearance rate this weekend is not a surprise to anyone who has been active in the market over the past few months. The suburbs we work across every week — from Moonee Ponds and Essendon through to Keilor East and Taylors Lakes — continue to show genuine competition. Properties that are well-presented and realistically priced are moving.
What has changed is the composition of who's buying. We are seeing fewer highly leveraged buyers operating at their absolute ceiling and more buyers with substantial equity, secure employment, and a clear view of their borrowing position. That is a sign of a market that has had a rational repricing — not a collapse.
The national numbers look alarming because they are dominated by markets like Brisbane, where the rate cycle has done significant work. Melbourne is different — in structure, in supply, and in the profile of its active buyers. That gap between 44% nationally and 71% locally is the data point Melbourne borrowers and investors should anchor on.
Brian Hermosilla and Frank Marin — directors with over 45 years of combined experience in business banking and mortgage broking, formerly with NAB — are available to discuss your position. Call 0401 333 636 for a same-day conversation.
General information only. This article is not financial, legal or investment advice. Data sourced from REIV (Victoria final clearance rates, week ending 11 October 2026) and PropertyUpdate/CoreLogic (preliminary national figures). Year-on-year comparisons are approximate. RBA cash rate information sourced from published RBA announcements. Speak with a qualified mortgage broker and your accountant before making any financial decision.
- What does Melbourne's 71% clearance rate mean for buyers this weekend?
- A 71% clearance rate means that 71 out of every 100 reported auction results in Victoria resulted in a sale. For buyers, this signals a competitive market — more properties are selling than not at auction. It means you need a solid pre-approval, a clear budget, and a willingness to act quickly, particularly in Melbourne's inner and middle-ring suburbs where competition tends to be strongest. Talk to IFG about your pre-approval options.
- Should Melbourne buyers wait for rates to fall before purchasing?
- That is ultimately a personal decision that depends on your circumstances, and we recommend speaking with a qualified broker and your accountant before making any property decision. What the data shows is that Melbourne's clearance rate has remained above 70% even with the cash rate at 4.60%. Waiting carries its own risks: competition, stock availability, and price movements can all shift before any rate reduction occurs. The 3 November RBA meeting is the next key date — we can help you model your borrowing position at current and hypothetical future rates. Use our home loan calculator as a starting point.
- Why is the national clearance rate so much lower than Melbourne's?
- The national combined capital city preliminary clearance rate of 44.4% is pulled down significantly by Brisbane (17.8%) and partly by Sydney (52.8%) and Canberra (42.8%). Melbourne and Victoria's 71% REIV result reflects tighter supply, stronger owner-occupier demand, and a more diversified buyer profile in the current rate environment. Each capital city market operates independently — using national averages to make Melbourne-specific decisions can be misleading.