Why Auction Strategy Matters
In many inner-city markets, auctions are the default way homes are sold. That creates competition, time pressure, and emotional decision-making for buyers, especially first home buyers who are navigating the process for the first time.
Understanding how common auctions are, and how competitive they’ve become, explains why preparation and strategy matter so much.
If you’re buying in an auction-heavy market and want clarity before auction day, our services are designed to support you at the stage that matters most.
How big the auction market really is
Each year, tens of thousands of residential properties are sold across Sydney. Estimates for 2024 place total residential sales between 50,000 and 70,000 properties, with a significant proportion sold via auction.
During peak selling periods, Sydney regularly sees 1,100 to 1,400 auctions scheduled each week, highlighting how normalised auction buying has become for houses and high-demand apartments.
For buyers, this means auctions are not the exception. They are the environment you’re expected to perform in.
Clearance rates and what they mean for buyers
Auction clearance rates show how many properties sell on the day or shortly after auction.
In strong market conditions, clearance rates across inner Sydney frequently sit above 70%, and can push higher during peak seasons. This signals a seller-controlled market, where competition is high and prices can move quickly.
For buyers, especially first home buyers, high clearance rates increase the risk of:
emotional bidding
exceeding planned budgets
reacting instead of acting strategically
This is where having a defined bidding strategy and clear walk-away price becomes critical.
Why this matters for first home buyers
First home buyers often feel additional pressure at auction:
no cooling-off period
large financial commitment
limited experience reading agent or auctioneer behaviour
Without preparation, it’s easy to overpay by tens of thousands of dollars in the heat of competition.
Auction strategy isn’t about bidding harder. It’s about knowing when to bid, when to stop, and when to walk away.
Where auctions dominate
Auctions are particularly dominant in certain regions:
Eastern Suburbs
Often 40–55% of listings are sold via auction, particularly houses and premium apartments. Competition is strong and auctions are commonly used to drive price growth.Inner West
With 30–45% of properties sold by auction, this area consistently attracts multiple bidders due to limited supply and high buyer demand.Lower North Shore
Auctions account for 35–50% of listings in many suburbs, especially for family homes and prestige properties.
In these areas, buyers are not competing against one or two others. They are competing in highly visible, fast-moving public environments.