With fewer than 400 auctions conducted over the weekend, some may argue it’s too early to draw firm conclusions about where the property market is headed in 2025. However, an 82% clearance rate is undeniably strong, and it raises an important question: Is confidence returning to the market?

Scheduled Auctions
721
Reported Auctions
384
Total Sold
314
Total Passed In
70
Clearance Rate
82%

As we step into a year filled with potential political shifts—including a possible change in federal government and a looming state election in Victoria in 2026 it’s worth considering how these factors could influence property trends in the months ahead.

Are We Seeing the First Signs of a Market Rebound?

A high clearance rate, particularly in a lower-volume auction week, can indicate strong demand from buyers. While seasonal factors play a role, February auctions often start slow before ramping up. The early signs suggest buyers are willing to act, despite interest rate uncertainty and broader economic concerns.

The question now is whether this confidence will continue as auction volumes increase. If clearance rates remain high once more properties hit the market, it could signal the beginning of a more sustained recovery.

The Impact of Political Uncertainty

Elections often bring uncertainty to the housing market. With a federal election on the horizon, policies around housing affordability, taxation, and foreign investment will be key issues for both buyers and sellers. A potential change in government could mean shifts in incentives, first-home buyer grants, or tax policies—all of which could influence demand.

In Victoria, the prospect of a state government change adds another layer of unpredictability. If a new government introduces policies that impact stamp duty, infrastructure projects, or planning laws, we could see shifts in buyer and investor sentiment.

What to Expect Moving Forward

While this weekend’s results are encouraging, the real test will come as more properties hit the market in the coming months. Key factors to watch include:

Auction volumes vs. clearance rates: Will strong results hold as more properties go under the hammer?

Interest rate decisions: Will the RBA provide relief or maintain a cautious stance?

Government policies: How will election campaigns shape market sentiment?

For now, the early signs point to renewed confidence, but it’s too soon to declare a full market rebound. Buyers and sellers alike should keep a close eye on market trends as 2025 unfolds.

The renewed confidence in the property market appears to stem from growing certainty around both the federal and state political landscape. With both the Federal and State Government potentially shifting from Labor to Liberal, buyers and investors may be anticipating a move away from high-taxation policies toward a system that rewards independent enterprise and property ownership.

If this trend continues, we could see sustained momentum in the market as more buyers re-enter with confidence, expecting a more favourable environment for investment and homeownership. While it’s still early days, the strong clearance rates suggest that optimism is returning, setting the stage for a potentially stronger property market in 2025.