First home buyer wins $725,000 unit as auction market tanks

On June 22, 2026, a first-time homebuyer secured a one-bedroom apartment in Sydney's Redfern suburb for $725,000 after it was auctioned by an investor. This sale marked a significant moment in a broader trend of declining auction clearance rates across the city. According to Domain Group, Sydney’s preliminary auction clearance rate dropped to 47 percent, the lowest since April 2020, when lockdowns caused widespread cancellations of property auctions during the height of the pandemic.

The property in question, located at 35/165–173 Cleveland Street, attracted three registered bidders—all first home buyers. The bidding started precisely at the guide price of $675,000, which had been reduced from an initial estimate of $700,000. A series of incremental bids—ranging between $3,000 and $5,000—pushed the final selling price to $725,000, surpassing the reserve price of $670,000 by $55,000. The vendor, based in the Shire, and the buyer, who was previously renting in Redfern, both found the transaction satisfactory. The unit had last changed hands in 2018 for $665,000.

This particular sale occurred amid a larger decline in the Sydney property market. Last week saw 865 scheduled auctions, but by Saturday evening, only 520 had resulted in sales, with 213 being withdrawn. These withdrawals are included in the calculation of the clearance rate, contributing to the drop. Compared to the previous week, the clearance rate decreased by four percentage points and was 22 percentage points lower than the same period in the prior year.

Dr. Shane Oliver, chief economist at AMP, expressed concern over the current state of the property market. He noted that factors such as interest rate increases, recent tax reforms, and overall consumer uncertainty are collectively driving down property values. While some might believe these changes won't directly affect them, Oliver emphasized that the ripple effects could be substantial. He pointed out that the proposed budget has been criticized for being "anti-aspirational," potentially discouraging individuals from pursuing avenues to build wealth. Given that housing constitutes approximately 70 percent of household wealth in Australia, falling property prices could lead to a negative wealth effect, prompting households to reduce their spending.

Investor activity remains robust, accounting for around 40 percent of mortgage lending. However, this segment of the market is unlikely to be fully replaced by first-home buyers, according to Oliver. He highlighted that the fundamental issue persists: an insufficient supply of housing, which continues to challenge the market dynamics.

In another notable sale, a five-bedroom family home in Roseville, guided at $3.5 million, took an hour to sell at auction. Located at 57 Park Avenue, the property attracted five registered bidders, with three ultimately participating in the bidding process. Starting at $3.3 million, the price climbed incrementally in $50,000 and $20,000 increments before reaching the reserve price of $3.68 million. Further small increments brought the final sale price to $3,782,000, going to a young local family. The house had last traded for $380,000 in 1992.

Jessica Cao, a selling agent from Ray White Upper North Shore, commented on the competitive nature of the auction environment. She noted that vendors recognized the current market conditions and accepted the outcome as the best possible given the circumstances. Despite the general caution among buyers, many remain committed to purchasing homes they intend to occupy long-term, often for two decades or more.

Another high-profile sale took place in Croydon, where a four-bedroom family home requiring cosmetic improvements in a conservation area sold for $3.45 million. The property at 29 Brady Street was described as spacious, though specific details regarding the extent of renovations needed were not disclosed. The sale underscores the continued demand for quality properties despite the broader economic challenges facing the real estate sector.