Labor’s landslide election victory has given a significant boost to Australia’s housing market, with auction clearance rates jumping to 70% in the week following the election.
According to property data firm Cotality (formerly CoreLogic), this represents a 10% increase compared to mid-April, reflecting renewed buyer confidence.
Experts predict house prices will rise faster than salaries throughout the rest of 2025, driven by strong demand and upcoming government buyer assistance packages.
Last week saw 1,784 capital city auctions, the highest number since the week before Easter, with Melbourne leading with 830 auctions and a 73.2% clearance rate.
Sydney recorded a clearance rate of 67.7% from 665 auctions, continuing a trend of remaining just below the 70% threshold for eight straight weeks.
Market optimism has grown amid expectations of an interest rate cut next week, with the Reserve Bank of Australia expected to reduce the current 4.1% cash rate.
Some economists anticipate a 25-basis-point cut, while others suggest a larger reduction to 3.6%, following February’s historic rate drop.
Improving global sentiment, including renewed US-China trade talks, and core inflation falling to 2.9%, have also contributed to the positive outlook for the housing sector.
