The iconic 'smallest home on the Bay Run' in Drummoyne passed in on a bid of $3.71 million at auction on Saturday, failing to meet its $3.9 million reserve. The outcome coincided with a drop in Sydney's preliminary auction clearance rate to 48 per cent, down from 69 per cent at the same time last year, according to Domain data.
The 48 per cent preliminary clearance rate was drawn from 564 reported results out of 985 scheduled auctions. AMP chief economist Dr Shane Oliver noted the gap was just over 20 percentage points from the previous year and said the recovery could take longer than the June quarter next year.
“It’s quite possible that you won’t really start to see a decent recovery in the property market until sometime in the second half of next year,” Oliver said. He pointed to the lack of signs that the Reserve Bank is about to cut rates, describing further rate rises as a more likely scenario that would prolong the downturn.
Selling agent Christian Leung of Ray White Concord | Five Dock said two parties registered for the Drummoyne property. After bidding opened at $3.5 million and a vendor bid of $3.7 million was placed, the highest bidder added $10,000 before the property was passed in. Leung expressed confidence it would sell. “Whether it sells today or whether it sells in the next two weeks, we’re pretty confident it’ll sell,” he said. The price guide has since been updated to between $3.75 million and $3.9 million.
In Marsfield, a three-bedroom house at 5 Winston Street sold for $2,152,000. Selling agent Catherine Murphy from The Agency said the auction was hard-fought and disputed the characterisation of the market as sluggish. “Even though the conditions probably aren’t as favourable to sellers right now, it presents an excellent opportunity for buyers,” she said.
In Epping, a two-bedroom unit at 3/13 Carlingford Road sold above reserve for $915,000 to a family from Hong Kong. Selling agent Betty Ockerlander from McGrath Epping said some buyers were apprehensive about waiting for Tuesday and wanted to double-check their borrowing capacity the following week.
Analysis
Why This Matters
- Sydney's auction clearance rate, a key barometer of housing market health, has dropped 20 percentage points year-on-year, signalling a significant slowdown in one of Australia's most expensive property markets.
- Economist forecasts from a major bank predict a prolonged downturn extending into late 2027, suggesting current headwinds from interest rate rises are more intense than previously expected.
- The varied outcomes for individual properties, from a high-profile pass-in to competitive sales, illustrate a market split between cautious buyers and sellers holding firm on reserve prices.
Background
The article covers Sydney auction results for the last week of October 2026, a period of high auction volumes. The market is facing sustained pressure from rising interest rates, with the Reserve Bank showing no sign of easing its tightening cycle. This contrasts sharply with the stronger conditions recorded at the same time in 2025.
Key Perspectives
Dr Shane Oliver, AMP chief economist: Argues the market has weakened significantly and recovery will be delayed, likely until the second half of 2027, if the RBA continues to raise rates.
Selling Agent Christian Leung: Expresses optimism that the premium Drummoyne property will secure a sale quickly despite passing in, citing strong interest in its reimagined design.
Selling Agent Catherine Murphy: Pushes back against characterising the market as sluggish, arguing from her experience in Marsfield that conditions are currently very favourable for buyers.
What to Watch
- Whether the Drummoyne property sells within its updated price guide range and whether it sets a new benchmark for the prestige end of the market.
- The Reserve Bank's decision on interest rates this week, identified by Dr Oliver as the single biggest variable determining the market's trajectory.
- The clearance rate for the following week to see if the downward trend continues or stabilises.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- Partly supportedThe Drummoyne home is described as the ‘smallest home on the Bay Run’.Brisbane Times - Latest News: ““We had a lot of people come through because it’s probably the smallest home you can buy on the Bay Run,” selling agent Christian Leung from Ray White Concord | Five Dock said.”
- SupportedThe Drummoyne property passed in at auction on a $3.71 million bid.Brisbane Times - Latest News: “An iconic sandstone property on the Bay Run is still available after passing in on a bid of $3.71 million at auction on Saturday.”
- SupportedSydney’s preliminary auction clearance rate dropped to 48 per cent.Brisbane Times - Latest News: “By Saturday evening, Domain recorded a preliminary auction clearance rate of 48 per cent from 564 reported results throughout the week”
- SupportedThe AMP chief economist said a decent property-market recovery may not begin until the second half of 2027.Brisbane Times - Latest News: ““It’s quite possible that you won’t really start to see a decent recovery in the property market until sometime in the second half of next year.””
- SupportedSydney’s preliminary clearance rate was down from 69 per cent at the same time last year.Brisbane Times - Latest News: “Chief economist at AMP, Dr Shane Oliver, said Domain’s clearance rate of 48 per cent for Sydney last week was 69 per cent this time last year.”
- SupportedThe Drummoyne property’s reserve was $3.9 million.Brisbane Times - Latest News: “The reserve had been $3.9 million.”
- SupportedOliver said, “It’s quite possible that you won’t really start to see a decent recovery in the property market until sometime in the second half of next year.”Brisbane Times - Latest News: ““It’s quite possible that you won’t really start to see a decent recovery in the property market until sometime in the second half of next year.””
- SupportedOliver said there was no sign the RBA was about to cut rates and that further rate rises were more likely, prolonging the downturn.Brisbane Times - Latest News: ““There’s no sign that the RBA is about to cut rates. A more likely scenario is that they’ll keep raising them, which means that the downswing in the property market continues.””
- SupportedLeung said, “Whether it sells today or whether it sells in the next two weeks, we’re pretty confident it’ll sell.”Brisbane Times - Latest News: ““Whether it sells today or whether it sells in the next two weeks, we’re pretty confident it’ll sell.””
- SupportedThe Marsfield house sold for $2,152,000.Brisbane Times - Latest News: “The two competing parties continued to bid in $5000, $10,000 and $1000 lots until it sold under the hammer for $2,152,000.”
- SupportedMurphy described the auction as hard-fought.Brisbane Times - Latest News: “Selling agent Catherine Murphy from The Agency said, “It was a really hard fought auction.”
- SupportedThe Epping unit sold above reserve for $915,000.Brisbane Times - Latest News: “In Epping a two-bedroom unit at 3/13 Carlingford Road overlooking Boronia Park sold above its $860,000 reserve for $915,000 to a family from Hong Kong.”