Victorian buyers flock to auctions despite new interest rate pain – realestate.com.au

Victoria’s property market is defying this month’s rise in interest rates, with the number of buyers rising in subsequent weeks compared to the same period a year ago.

Data from Australia’s largest property company Ray White shows an average of 3.4 registered bidders at auctions across the state in the first two weeks of February – higher than the 2025 average of 3.1 in the same period.

There were also typically 2.6 active bidders at each auction in both time frames, despite the Reserve Bank raising rates to 3.85 per cent after its meeting on February 3 this year.

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Realestate.com.au research arm PropTrack is expecting 831 auctions across Victoria this week, after the state recorded a 61 per cent clearance rate last week.

Ray White Victoria and Tasmania Chief Auctioneer Luke Banitsiotis said while it was normal to expect the interest rate rise would have taken the wind out of the Victorian market’s sails, the story on the ground was different.

Mr Banitsiotis said part of the state’s resilience is due to the fact that buyers are still willing to compete when the right home comes along.

“There is also a feeling among buyers that quality supply is still limited, which continues to put pressure on well-presented properties,” he added.

“While interest rate increases may influence behavior, they have not deterred Victorians from buying.”

This three-bedroom house at 13 Plume Drive, Mernda, sold for $795,000 on Thursday after three bidders competed for the keys. Ray White’s Chloe Topouzis had the mention.

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Ray White Victoria and Tasmania Chief Auctioneer Luke Banitsiotis say Victoria’s auctions continue to attract real crowds and real competition.

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Ray White’s data also showed an average of 3.7 buyers attended each open day in Greater Melbourne last week, compared to 3.2 buyers 12 months earlier.

Ray White Group chief economist Nerida Conisbee said Australia registered an average of 3.3 people for each open house held in the week of the RBA’s rate announcement, down 0.2 percent from the same week in 2025.

The suburb of Craigieburn has 24 auctions scheduled this week, Preston 13 auctions and Glen Waverley, Kew and Greenvale 11 auctions each. Photo: NewsWire/Andrew Henshaw.

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Ray White chief economist Nerida Conisbee says the agency’s 8774 open houses across Australia attracted 34,816 visitors in the week the RBA hiked rates.

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“The open home data now indicates that once policies were tightened, activity responded quickly, even as underlying supply constraints continue to limit the potential for sharp price declines,” Conisbee said.

The rate increase means a household with an average home loan of $694,000, according to Australian Bureau of Statistics data, will now spend $4233 on their mortgage every month instead of $4337 previously.

This amounts to an additional $1248 per year.

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