Key takeaways
February saw the highest level of new listings and auction activity on record, particularly in Melbourne, Canberra, and Sydney, giving buyers more choice.
Strong auction activity and clearance rates, at their highest February levels since 2023, suggest sellers are becoming more confident about listing their properties.
Vacancy rates across most capital cities remain near record lows, highlighting the ongoing shortage of rental accommodation across Australia.
Days on market have risen in cities like Sydney, Melbourne and Brisbane as affordability pressures and increased supply give buyers a little more breathing room.
Despite short-term fluctuations in listings and selling times, limited housing supply and strong population growth continue to support Australia’s property markets.
Every year the property market follows a familiar rhythm.
January is sleepy. Buyers are still on holiday, sellers are hesitant, and the market feels like it’s barely moving.
Then February arrives… and the real year begins.
This year has been no exception.
As soon as the market woke up, activity lifted sharply - more properties hit the market, auction volumes climbed, and buyer demand showed signs of strengthening.
It’s still early in the selling season, but the first data of the year is giving us an important clue about the direction of Australia’s property markets in 2026.
And the message is clear: the market may have more momentum than many expected.
According to Domain's latest Market Insights February 2026 marked the highest new listing and auction volumes on record, with Melbourne, Canberra and Perth leading the charge in new monthly supply.
Domain Chief of Research and Economics, Dr. Nicola Powell said:
"The property market saw a clear uplift in February, with new listings and auction volumes reaching record levels for the month of February.
Clearance rates were also at their highest February level since 2023, underscoring a notable boost in seller confidence.
However, recent global instability is creating uncertainty around potential inflationary pressures and the subsequent impact to household budgets.
While Australia's housing market has historically proven resilient during periods of volatility, the prospect of another interest rate hike could temper momentum in the short term - impacts that we will continue to watch closely. "
Auction clearance rates
The Domain report shows that across the combined capitals, auction clearance rates dipped slightly to 67.2%, though this is the highest February clearance rate since 2023.
Capital city highlights
New supply was the highest on record for February, according to the report.
Auction volumes were at record highs for the period, while clearance rates declined to the lowest level since February 2019 – though they still reflected solid buyer demand at 67.6%.
Days on market for units were at a five-month high, while houses were at a six-month high.
The vacancy rate fell to 1.0% in February, its lowest since May 2024.
New supply hit record highs, giving buyers a wider pool of options and signalling that sellers were increasingly motivated to list, according to Domain's data.
However, days on market for houses were at a six-month high, while units hit an eleven-month high.
The vacancy rate fell to 0.8% in February, a record low.
The data shows that new supply for February hit its third lowest levels on record, while total supply is still at record lows, maintaining a competitive market for buyers.
Vacancy rates decreased to 0.6%, also a record low.
Days on market for houses were at a five-month high, while units are at an eight-month high.
Adelaide
New supply is at its lowest February levels since 2023, highlighting a persistently competitive environment for buyers.
- Also read:National Vacancy Rate Falls to 1.1% | SQM Research
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2026: Where To Now After The Rate Rise.
- Also read:Something strange is happening in Australia’s housing market right now | Property Insiders
- Also read:National Weekly Auction Report – March 7th 2026 | Auction Clearance Rates Ease as Listings Fall Over Holiday Weekend
- Also read:Latest Property Asking Prices State by State | National Listings Rebound Strongly in February as New Supply Surges
This was also reflected in the strongest February auction clearance rates on record.
Days on market for houses were the lowest since 2004, while units were the lowest since December 2024.
Vacancy rates remain at 0.4%, one of the lowest in the country.
Canberra
It was a record-breaking February for new supply, with auction clearance rates also at the highest since 2022.
The vacancy rate declined to 0.8%, the lowest figure since mid-2022.
Perth
New supply rose to a three-month high after the holiday lull, but for the month of February, new listings are at their lowest on record.
This underscores the highly competitive conditions for buyers.
Days on market for houses are at their second-lowest on record, while units are at record low levels for February.
Vacancy rates fell to 0.3%, one of the lowest in the country.
Hobart
New supply for the month of February is at its lowest since 2022, while days on market for houses and units are at their lowers in three and four years respectively – indicating increasingly competitive conditions for buyers.
The vacancy rate remained at a record low of 0.2%, the country’s lowest.
Darwin
New listings are at their second lowest on record for the month of February, while houses are selling at their fastest pace since 2008.
The vacancy rate fell to a record low of 0.3%.
Days on market continue to diverge
The reports also highlights that Perth remains the country's fastest-moving housing market, with days on market hitting record lows.
Adelaide is also seeing homes sell particularly quickly.
While days on market figures are broadly lower annually, selling times have risen in places like Sydney, Melbourne and Brisbane in the last few months as affordability pressures and slightly higher supply give buyers more time to make decisions.
Final note
While there’s clearly more stock coming onto the market in some capitals, the bigger picture hasn’t really changed.
Australia still has a chronic shortage of well-located housing, vacancy rates remain near record lows, and population growth continues to underpin long-term demand.
In my mind, this simply reinforces an important lesson: property markets move in cycles, but quality assets in the right locations keep performing over time.
Short-term fluctuations in listings, clearance rates or interest rate expectations may create a little noise, but the fundamentals driving Australia’s housing markets remain firmly in place.
Savvy investors will focus less on the headlines and more on the long-term opportunities these market conditions create.
