Australia’s property market is gaining pace, and all indicators suggest that Spring 2025 is shaping up to be one of the most active and competitive seasons in recent years.

According to the latest Domain Market Insights (August 2025), buyer activity has returned in full force following a quieter winter. Auction volumes are climbing, clearance rates are hitting multi-year highs, and property supply across the combined capital cities is tightening.

Dr. Nicola Powell, Chief of Research and Economics at Domain, highlighted the shift:

“August signalled a powerful return of momentum to the Australian property market. While supply slowed over winter, buyer demand remains strong, with auction clearance rates hitting their highest levels in more than two years.”

Key Market Indicators

• Auction clearance rates across the combined capitals reached 69.3%, the highest level since June 2023.

• Auction volumes in August were the third highest on record for this month.

• Sydney and Melbourne led the charge, recording their strongest auction performances in over two years.

• Brisbane was the exception, with clearance rates softening compared to last year.

What’s Driving the Momentum?

The market rebound is largely being fuelled by a familiar dynamic: strong demand and limited supply.

• New listings are at their lowest for a spring opening since 2022.

• Vacancy rates remain historically low across many capitals.

• With fewer properties available, buyers are competing harder, pushing up clearance rates and keeping pressure on already tight rental markets.

This environment is setting the stage for a highly competitive spring, particularly in cities facing long-standing supply shortages.

Capital City Highlights

Sydney

• New listings at a four-month low; total supply declining for a third consecutive month.

• Auction clearance rates surged to the highest since June 2023.

• Vacancy rate at 0.9% – the lowest recorded for August.

Melbourne

• Monthly supply is increasing, but still down year-on-year.

• Highest clearance rates since June 2023; largest annual improvement across capitals.

• Properties are taking longer to sell, with days on market at a five-year high.

Brisbane

• New supply at a record low for August; total supply declining for a third straight month.

• Vacancy rate at 0.7%, the lowest for August since 2022.

Adelaide

• Both new and total supply dropped to their lowest levels this year.

• Clearance rates approached a two-year high.

• Vacancy rate at 0.5%, remaining tight despite slight loosening.

Canberra

• Clearance rates reached their highest point since June 2023.

• New supply increased, but the annual decline in listings continues.

• Days on market climbed to a five-year high.

Perth

• New and total supply fell to a record August low.

• Days on market increased, yet discounting remains at its lowest since 2006.

• Vacancy rate steady at 0.5%.

Hobart

• Total supply at its lowest in over three years.

• New supply reached a record August low.

• Vacancy rate at 0.3%, marking one of the nation’s tightest rental markets.

Darwin

• Supply levels remain low, with a minor rise in distressed listings.

• Vacancy rate hit 0.3%, the lowest ever recorded, underscoring intense rental pressure.

Cautious Buyers, Competitive Behaviour

While auction activity is strong, properties are taking longer to sell in some regions.

• Canberra and Melbourne are experiencing the longest days on market in years.

• In contrast, Adelaide is seeing properties sell at their fastest rate in seven months.

This highlights the diversity of market conditions across the country. Localised trends are playing a significant role, and buyer sentiment is varying by region.

Despite this, demand remains strong, especially for well-located and high-quality properties. Buyers may be cautious, but when the right home hits the market, competition is fierce.

What This Means for Investors

For property investors, the current conditions present a window of opportunity:

• Low vacancy rates continue to support rental growth.

• Strong auction results indicate healthy buyer demand.

• Supply constraints mean well-positioned properties are attracting strong attention.

Investors who are prepared and able to act quickly will be best placed to capitalise on this active spring market.

Looking Ahead

The Australian property market has well and truly reignited. August marked a clear turning point, with momentum now building as we move further into the spring season.

All signs point to a dynamic and highly competitive selling period, with demand expected to continue outpacing supply. Buyers, sellers, and investors alike should be ready—this spring could be one of the busiest we’ve seen in years.