The Property Market Is Heating Up: Why Spring Could Be Supercharged

Australia’s property market is waking up, and it looks like it’s gearing up for a supercharged Spring.

The latest Domain Market Insights for August reveal that after a quieter winter, buyers are back in force, auction activity is surging, and stock levels are tightening across the combined capitals.

Dr. Nicola Powell, Domain’s Chief of Research and Economics, summed it up perfectly:

“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.”

Here's what Domain sees happening across the nation's property markets.

Auction activity hits a two-year high

According to Domain's data, auction clearance rates are sitting at 69.3% across the combined capitals, the strongest result since June 2023.

Source: Domain

Even more telling is the sheer volume of auctions: August recorded the third-highest number on record for this month.

Unsurprisingly, Sydney and Melbourne are leading the charge, both notching their highest clearance rates in over two years.

But while most capitals are experiencing heightened buyer competition, Brisbane is the outlier, showing a dip in clearance rates compared to last year.

What’s driving the market?

The simple answer: demand is outpacing supply.

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

• Vacancy rates are tightening further, with several capitals recording historic lows.

• Buyers are competing over fewer properties, which is placing upward pressure on clearance rates and keeping the rental markets incredibly tight.

Source: Domain

This imbalance sets the stage for a competitive spring selling season, one that could push prices further upward, particularly in markets already underpinned by chronic undersupply.

Capital city highlights

Sydney

• New supply at a four-month low, total supply falling for a third month.

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

• Vacancy rate at 0.9%, the lowest August figure on record.

Melbourne

• Supply rising month-on-month but still down annually.

• Clearance rates at their highest since June 2023, with the largest annual increase across the capitals.

• Houses are taking longer to sell, with days on market at their highest since 2020.

Brisbane

• New supply at a record low for August.

• Total supply down for a third consecutive month.

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

Adelaide

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

• Clearance rates rose to an almost two-year high.

• Vacancy rate at 0.5% , still tight, but slightly looser than recent years.

  • Also read:National Auction Report – September 13th 2025 | Auction Numbers Surge into Spring – Strong Clearance Rates Steady
  • Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – September 2025
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  • Also read:This week’s Australian Property Market Update – Latest Data, State by State September 9th 2025
  • Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2025–26: Where Prices Are Headed After Three Rate Cuts.

Canberra

• Clearance rates at their highest since June 2023.

• New supply rose, but the annual rate of decline is worsening.

• Days on market hit a five-year high.

Perth

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

• Days on market climbed to a two-year high, but discounting is at its lowest since 2006.

• Vacancy rate steady at 0.5%.

Hobart

• Total supply at its lowest in more than three years.

• New supply at a record low for August.

• Vacancy rate at 0.3%, one of the tightest rental markets in the country.

Darwin

• Supply at record lows, despite a small lift in distressed listings.

• Vacancy rate at 0.3%, the lowest on record, highlighting fierce rental competition.

Buyers slowing down, but competition remains fierce

Interestingly, while auctions are buzzing, days on market are stretching out in several cities.

Buyers in Canberra and Melbourne are taking their time, with properties there recording the longest selling times in years.

Source: Domain

But in contrast, Adelaide is moving fast.  houses are selling at their quickest pace in seven months.

This shows us two things:

1. The market is patchy, not uniform. Local conditions matter more than ever.

2. Buyers are cautious, but they’re still competing hard, especially when quality stock hits the market.

For property investors, the message is clear:

• We’re entering a spring season where demand will outweigh supply.

• Vacancy rates remain incredibly tight, supporting rental growth.

• Auction success signals buyer depth, meaning well-located properties are in hot demand.

If you’re looking to grow your portfolio, now is the time to prepare.

With supply constrained and competition heating up, opportunities will favour investors who can move decisively.

Bottom line

Australia’s property market has roared back to life.

August was the turning point, and as we head into spring, momentum is building.

Don’t expect this to be a quiet season; all the signs point to one of the most competitive selling periods we’ve seen in years.