Benn Dorrington, Industry Editor and Analyst
First published 27 Oct 2026, 1:03pm
Nearly two thirds of home sellers who went to auction in Melbourne last week sold their properties despite being forced to reveal their reserve prices early.
It's a surprising result under the state government's new reserve price laws, with greater Melbourne achieving a preliminary clearance rate of 60.1% out of 539 auctions last week, according to realestate.com.au.
One of those successful sales was the auction of a three-bedroom townhouse in Reservoir in Melbourne's north, attracting five registered bidders and three active bidders before selling for $831,000.
The townhouse at 7/11-13 Olive Street, Reservoir in Melbourne sold at auction for $831,000 last week. Picture: realestate.com.au/sold
A young couple looking to buy their first home won the Reservoir auction after visiting the townhouse for the first time a few days earlier.
Real estate agents say Victoria's home sellers are adapting to the new rules, which now requires reserve prices to be disclosed seven days out from auction day.
Nationwide, there were 1,593 homes scheduled for auction last week, recording a preliminary national clearance of 41.5%.
Property market conditions have been softening nationally since the Reserve Bank started increasing interest rates , and the federal government overhauled negative gearing and capital gains tax rules for property investors.
The property: The three-bedroom, two-bathroom townhouse at 7/11-13 Olive Street, Reservoir sold at auction for $831,000 on Saturday October 24.
Suburb profile: Reservoir is situated in Melbourne's north, located about 12 kilometres from the CBD.
The Reservoir home was finished with hardwood timber floors. Picture: realestate.com.au/sold
Reservoir's median house price increased 3.3% to $950,000 during the year to October, according to realestate.com.au.
Selling agent Alastair Surtees of Ray White Reservoir oversaw the campaign and spoke to realestate.com.au about the result.
It was in a central part of Reservoir, within walking distance of shops and the station. It had been renovated, so buyers could move straight in, and it was a good size.
The home came with an updated kitchen and dining area. Picture: realestate.com.au/sold
We had around 30 to 35 groups through the property. The initial reserve was $810,000, but after hearing buyer feedback, we reduced it to $795,000. It sold for $831,000, with five registered bidders and three active bidders.
It was competitive. Bidding started at $750,000 and reached around $810,000 comfortably, then gradually climbed to $831,000.
There were three bedrooms located on the upper level. Picture: realestate.com.au/sold
The successful buyers had bid on a property on Storey Road the weekend before and were the underbidders.
They came through this home on Wednesday and bought it on Saturday. Many interested buyers were first-home buyers; the purchasers were upsizing from an apartment to a larger home in Reservoir.
The rules meant we needed to have more direct conversations with the owners about the reserve. On Monday, I called and texted buyers to ask where they felt comfortable setting it.
The home came with a central bathroom and an ensuite. Picture: realestate.com.au/sold
Their feedback suggested a reserve between $750,000 and $780,000. I shared that with the owners, and we ultimately agreed on $795,000.
Yes, absolutely. Asking buyers for their views helped us align the owners’ expectations with the market.
We set the reserve slightly above buyers’ recommendations, and competitive bidding took the price to $831,000.
If there’s a change in government, I expect more confidence in the real estate market and increased interstate investment.
Melbourne has become relatively affordable compared with other capital cities, which could support growth.
The property had a neat backyard and a secure garage. Picture: realestate.com.au/sold
I expect a slight lull between now and Christmas, followed by prices rising again in the new year. Buyers who purchase before Christmas may find good opportunities, though this is only my view.
If you’re financially ready and find the right property, consider acting rather than waiting to see what everyone else does.
I’m looking to buy myself and plan to move when I find the right place. The media may be overhyping some concerns, and the market still seems reasonably healthy.
If you’re upgrading, selling in a stable or softer market can mean a smaller price gap between your current home and your next one.
The market still appears healthy, so don’t be afraid to put your home on the market.
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