Australia's spring property season opened with sharply reduced auction activity, as nearly 1,500 homes went to auction across capital cities — a 31% decline from the same period last year, according to Cotality. The data marks the fourth consecutive week with volumes more than 30% down on 2025 levels, signaling continued weakening in the housing market following government property tax changes in May. Cotality Research Director Tim Lawless noted activity may pick up over the next two weeks, with around 1,900 auctions expected by month-end.

Sydney clearance rates reached an 18-week high of 57.7%, though only 523 homes were auctioned — about 28% lower than a year earlier. Bloomberg Economics economist James Mc Intyre warned the downturn has further to run, citing consecutive Reserve Bank rate hikes, the Iran war's impact, and tax changes as factors that have "rocked buyer confidence." He projects declines continuing into the first quarter of 2027, based on historical housing cycles averaging 11 months from peak to trough.