![An aerial/drone view onto the city of Melbourne, Victoria, Australia at sunrise](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Just 452 homes are set for auction this week in Melbourne, a 60 per cent drop on the same time last year.
The Victorian government’s new auctions laws will commence amid the worst October auction market in years.
According to realestate.com.au data, the 452 Melbourne homes set to go under the hammer this week is the lowest in three years for the traditionally busy spring month, compared to a week in October 2023 when there were 236 auctions.
Last week’s clearance rate plunged to 49.3 per cent, while a Market Snapshot report released by REA.com this week shows the number of new homes listed for sale in the city dropped by 14 per cent in September.
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It comes as a prominent real estate figure warns the Ben Carroll government’s new auction legislation requiring homeowners to advertise their reserve price seven days before an auction “goes out the window” once bidding commences.
Barry Plant’s chief auctioneer James Hatzimoisis said many buyers remained confused about the new auction laws, introduced on October 1 with a two-week grace period that ended on Thursday.
“The minute auction starts, all the new legislation goes out of the window,” Mr Hatzimoisis added.
“The other side of the equation is a vendor may well disclose their reserve and it may exceeded on the day, but that doesn’t really mean that they have to sell.”
He said homeowners could still decide to sell at a price below or above their reserve, regardless of the laws.
Realestate.com.au figures show Craigieburn is set to host the most auctions this week in Melbourne, with 11 homes to go under the hammer, followed by Glen Waverley with 10 auctions.
Real Estate Institute of Victoria’s chief executive Toby Balazs says the property market is a good litmus test as to where the broader economy is at.
The Real Estate Institute of Victoria’s chief executive Toby Balazs said a sub-50 per cent spring clearance rate showed Melbourne was facing “a very challenging market”.
Mr Balazs said it was not the ideal time to be introducing what he described as “still confusing legislation”.
“There’s many different factors of play, so it’s difficult for the industry to be able to navigate all of those, with new legislation that unfortunately hasn’t been drafted in a way that’s very clear as to exactly what needs to be done,” he noted.
“And that is not good for buyers, because the best, most transparent way to sell property and to see your competition is via an auction.”
Mr Balazs said the REIV was working with Consumer Affairs Victoria to educate agents about how the laws worked in practise, but there were a lot of nuances and challenges involved.
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Realestate.com.au senior economist Angus Moore says Melbourne’s market conditions remain fairly soft and home prices are declining.
Realestate.com.au senior economist Angus Moore authored the Snapshot report which stated Melbourne’s overall listings increased by 1.2 per cent last month, even though new listings fell sharply.
Mr Moore said this indicated homes were taking longer to sell, about 37 days on average compared to 29 days in 2025.
“Critically, the fact that home prices are falling is also showing up, increasing the number of homes that are selling at a discount to their initial listed price as well,” he added.
The realestate.com.au Market Snapshot report states that Melbourne’s clearance rates have been bouncing around the low-to-mid 50s for months, apart from the Grand Final weekend.
Melbourne’s median home price, covering houses, units and apartments, hit $819,000 in September, a 5.2 per cent fall from $861,588 just 12 months earlier, equating to a $42,588 difference.
According to the report, the cumulative impact of four interest rate rises, including in September, and changes to negative gearing and Capital Gains Tax in May’s federal government budget, has resulted in a pullback in buyer demand and borrowing capacity.
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