Australia’s auction market is expected to remain highly competitive through 2026, driven by renewed buyer confidence, government incentives, and increased investor activity. First home buyers, supported by both federal and state-based schemes, are tipped to be particularly active at auctions this year.

Investors are also returning in greater numbers. According to Domain, auction conditions are expected to be robust, underpinned by a noticeable pickup in investor lending. Senior economist Joel Bowman has highlighted that increased investor finance is likely to translate into stronger and more competitive clearance rates.

This follows a standout six-month period across Sydney and Melbourne, where auction clearance rates consistently sat in the high 60 to low 70 percent range. These levels are widely regarded as a healthy indicator of market strength.

Clearance rates serve as a pulse check for the property market. When results move into the 70 to 80 percent range, it often signals rising competition and upward pressure on prices. This dynamic is already evident in several inner and middle-ring markets.

While January has traditionally been a quieter period, the rise of large-scale auction events later in the month has changed seasonal patterns. These events are expected to kick-start the year, setting the tone for buyer activity and price expectations.

For buyers, competitive auction conditions reward preparation and discipline. Clear budgets, strong market knowledge, and emotional control are essential in environments where bidding can escalate quickly.

Auction strength will not be uniform across all markets. Suburbs with limited supply, strong owner-occupier demand, and good school or transport access are likely to see the greatest competition.

Understanding where auction heat is building, and where it has yet to arrive, remains a key advantage for informed buyers.