Melbourne Clearance Rates Hold in Low 60s
Melbourne’s auction market has navigated a difficult start to 2026 with measured resilience, recording preliminary clearance rates between 61–67% through March — a solid result given the headwinds of two back-to-back RBA rate hikes in February and March.
March in Numbers
Cotality’s final clearance figures for Melbourne settled in the low 60s for most of March, with the week ending March 28 recording 61.4%. REIV preliminary data tracked higher, in the 75–76% range for the same period — reflecting the typical gap between preliminary and revised figures as passed-in results are counted.
Inner East Holds Firm
The inner-eastern corridor — Hawthorn, Camberwell, Kew, Balwyn — remained the most competitive precinct, with well-presented properties under $2M attracting multiple bidders. Agents report that quality stock is selling, but vendors requiring prices above $2.5M are finding conditions more negotiable than in 2025.
Rate Hikes Creating Buyer Caution
The February hike to 3.85% and the March hike to 4.10% have dented borrowing capacity and reintroduced caution, particularly among first-home buyers and those at the top of their borrowing limits. Properties offering extended settlement terms are attracting stronger interest as buyers manage cashflow under higher rates.
Supply Remains Tight
New listing volumes remain below the ten-year average, which is providing a floor under prices. Without a meaningful uplift in stock, clearance rates are unlikely to deteriorate sharply even in the face of tighter credit conditions.
Outlook
The next RBA meeting is May 5. Financial markets are currently split on whether a third consecutive hike is likely — the outcome will materially shape auction volumes and clearance rates through the winter selling season.
