Australian property market sees surge in auction withdrawals

The share of homes pulled from auction in Australia has risen sharply as higher interest rates and changes to investor tax rules pressure sellers. In Sydney, the proportion of scheduled auctions withdrawn jumped from 21.9% at the end of May to 30.9% a week later and a preliminary 39.5% over the most recent weekend. Melbourne showed a similar trend, with withdrawals rising from 9.6% to 15.4% and then 16.4% in the same periods. Domain data indicates auction clearance rates have fallen to 49% in Sydney and 55% in Melbourne. Domain’s chief residential economist Dr Nicola Powell expects Sydney’s withdrawal rate to stabilise around 25‑30%, noting the market is markedly different from earlier in the year. Sellers are testing the market, with some reluctant to accept lower prices, while buyers are seeking bargains and even upgrading to larger homes as prices decline. Auctioneers report more low‑ball offers and a cautious pool of buyers awaiting clearer price signals.