Darlinghurst & Surry Hills Fortnightly Market Update

By Nicholas Murray Sales Manager, Murray Property

Sydney’s auction market softened again over the past fortnight. Domain’s preliminary clearance rate fell to 46% for the week ending 10 October, against 69% in the same week last year. In Darlinghurst and Surry Hills, 7 of the 13 auctions that reached a result sold, and 6 of those 7 sold before auction day. The message for 2010 vendors this spring is that the deal is increasingly done in the pre-auction period, not under the hammer.

The fortnight at a glance

Sydney auction measure	Week ending 3 October 2026	Week ending 10 October 2026
Domain clearance rate	53%	46%
Same week last year	72%	69%
Auctions scheduled	522	807
Results reported	331	483
Sold	174	224
Withdrawn	84	176
Passed in	73	83

Source: Domain. Sydney auction results. Figures are preliminary. The week ending 3 October was thinned by the NSW Labour Day long weekend.

Other measures	Latest figure
RBA cash rate	4.60% (raised in late September; next decision 3 November)
Sydney home values, September	Down 1.4% for the month and 7.0% over the year
Sydney total listings, September	39,068, up 19.3% on a year ago
Sydney new listings, September	Down 9.4% on a year ago

Sources: Cotality. Home Value Index, October 2026 · SQM Research. Total Property Listings, September 2026

What the clearance rates tell us

Sydney’s clearance rate spent September stuck in a narrow band in the low 50s. Homesearch Solutions recorded 54% for the week of 5 September, then 52%, 49%, 51% and 53% for the week ending 3 October. This week’s 46% is the first clear step down since early August, and it came on a full auction calendar of 807 scheduled auctions, so it can’t be blamed on a holiday weekend.

For context, the same weeks last year were clearing at around 70%.

Source: Homesearch Solutions. Sydney auction results

Read the headline alongside the withdrawals

The number I’d watch most closely this week isn’t the clearance rate. It’s the withdrawals. Of the 483 results reported, 176 were withdrawn, or about 36%. The week before it was about 25%.

A withdrawal usually means a vendor has decided not to face a public auction, often because the buyer interest isn’t there at their price. That tells you two things. More vendors are choosing to negotiate privately rather than risk a pass-in. And the clearance rate may understate how many campaigns are struggling, because a withdrawn property doesn’t show up as a pass-in.

Preliminary figures are also often revised once late results come in, so treat 46% as a starting point, not a final number.

Stock levels as spring peaks

SQM Research’s September figures explain why buyers are taking their time. Sydney had 39,068 properties listed for sale in September, up 19.3% on a year ago. But new listings were 9.4% lower than last September. Fewer people are listing, yet there’s more on the market.

Louis Christopher of SQM Research put it plainly: “In Sydney, fewer vendors are listing than a year ago, yet total stock is up almost a fifth. That’s a demand problem, not a supply surge.”

Older listings, those that have been on the market for a long time, were up 28.3% on a year ago. Properties are sitting longer, and buyers can see it.

Source: SQM Research. Total Property Listings, September 2026

Rates and prices

The RBA lifted the cash rate to 4.60% in late September, a 15-year high and its fourth increase this year. Cotality’s index shows Sydney home values fell 1.4% in September, a sixth straight monthly fall, and are now 8.6% below their February peak.

That sounds alarming, but the RBA’s October Financial Stability Review is worth reading alongside it. It found fewer than 2% of owner-occupiers with variable-rate loans are short on cash flow, and fewer than 1% owe more than their home is worth. In other words, prices are adjusting because buyers can borrow less, not because large numbers of owners are being forced to sell.

Sources: Cotality. Australian housing values down for sixth straight month · ABC News. RBA relaxed about housing downturn

A closer look at Darlinghurst and Surry Hills

Here is how Domain reported this week’s auction results in the 2010 postcode.

Suburb	Property	Outcome	Price
Darlinghurst	4-bedroom house	Sold before auction	Withheld
Darlinghurst	2-bedroom apartment	Sold before auction	Withheld
Darlinghurst	3-bedroom terrace	Passed in	—
Darlinghurst	1-bedroom apartment	Passed in	—
Darlinghurst	1-bedroom apartment	Withdrawn	—
Surry Hills	2-bedroom house	Sold before auction	$1,630,000
Surry Hills	3-bedroom house	Sold before auction	Withheld
Surry Hills	2-bedroom apartment	Sold before auction	Withheld
Surry Hills	2-bedroom apartment	Sold before auction	Withheld
Surry Hills	3-bedroom apartment	Sold at auction	Withheld
Surry Hills	2-bedroom house	Passed in	—
Surry Hills	4-bedroom terrace	Withdrawn	—
Surry Hills	2-bedroom townhouse	Withdrawn	—

Source: Domain. Sydney auction results, 4–10 October 2026. Three Darlinghurst apartment auctions were rescheduled and aren’t included.

Darlinghurst

Two of five results sold, both before auction: a four-bedroom house and a two-bedroom apartment. A three-bedroom terrace and a one-bedroom apartment passed in, and a second one-bedroom apartment was withdrawn. Three more apartment auctions were rescheduled, which often means a vendor wants more time to build their buyer list. This week, neither of the one-bedroom apartments that went to auction sold.

Surry Hills

Surry Hills was the stronger of the two. Five of eight results sold, four of them before auction, including a two-bedroom house for $1.63 million. Two-bedroom apartments sold well. The weaker results were at the top end: a four-bedroom terrace was withdrawn and a two-bedroom house passed in.

Next door in Potts Point

Potts Point had a solid week. Five of seven results sold, with disclosed prices from $800,000 to $1.375 million for one and two-bedroom apartments. For how the two suburbs compare, see our Potts Point vs Darlinghurst guide.

One week of results is a small sample, so I wouldn’t read too much into any single result. But the pattern is clear enough: in the 2010 postcode, well-presented property is selling, and it’s mostly selling before auction day.

What mid-spring means for vendors

Treat the pre-auction period as the main event

Six of the seven 2010 sales this week happened before auction. If a serious buyer makes a strong offer in week two or three of your campaign, take it seriously. In this market, the best offer may not still be there on auction day.

Price from current evidence, not from February

Sydney values are 8.6% below their February peak. A price guide based on what a neighbour achieved in summer will look optimistic to buyers who have been watching the market for months. Our guide to pricing a Darlinghurst property in a softening market covers how to set a guide buyers will engage with.

Know your Christmas cut-off

As a rough guide, a four-week campaign needs to launch by early November to reach auction before the December slowdown. If you want to sell this year, the decision needs to be made in the next few weeks.

Decide your pass-in plan before auction day

With more passing-in and withdrawals across Sydney, agree with your agent in advance what happens if the property doesn’t sell under the hammer: your negotiating range, how quickly you’ll respond to the highest bidder, and when you’d consider a private sale.

What buyers should take from the update

Buyers have noticeably more choice than a year ago, and more room to negotiate on property that has been on the market for a while. But the 2010 results show that the best-presented homes are still being bought before auction by people who don’t want to compete on the day. If you find the right property, waiting for auction day may mean missing it.

What I will be watching over the next fortnight

Withdrawals. Whether this week’s 36% was a blip or the start of vendors pulling back from public auctions.
Campaign launches. How many 2010 vendors list in the next two weeks to make the pre-Christmas window.
The RBA on 3 November. Another increase, or a hold, will shape buyer confidence heading into summer.
Old listings. Whether properties sitting on the market start to adjust their price guides.

Nicholas Murray’s view

The headline numbers are soft, and I’m not going to pretend otherwise. But the 2010 postcode is still doing what it usually does in a slower market: the right properties, priced on current evidence, are finding buyers, often before auction. The vendors having a harder time are those testing the market with a February price.

If you’re weighing up whether to sell this spring or wait until next year, the most useful thing I can do is show you the evidence for your street and property type, and give you an honest view of both options. You can read more about how I work with vendors, or see our guides to selling in Darlinghurst and Surry Hills.

Book a free sales appraisal with Nicholas →

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Disclaimer

The data, figures, and market statistics referenced in this article were current at the time of publication and are sourced from third-party providers including CoreLogic/Cotality, Domain, realestate.com.au, HtAG Analytics, PropTrack, and NSW Fair Trading, among others. Property market data changes frequently, median prices, rental yields, vacancy rates, clearance rates, and days on market figures are updated regularly by their respective providers and may have changed since this article was published. Readers are encouraged to verify all figures directly with the cited sources before making any decisions.

This article is intended as general information only. It does not constitute financial, investment, legal, or taxation advice. The information provided does not take into account your individual circumstances, objectives, financial situation, or needs. Before making any property investment, purchase, sale, or management decision, you should seek independent advice from a qualified financial adviser, solicitor, or property professional licensed in your state.

Murray Property is a licensed real estate agency operating in NSW. We are not financial advisers. References to rental yields, capital growth, or investment returns are based on publicly available market data and historical performance, which is not a reliable indicator of future results.

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