Darlinghurst & Surry Hills Market Update

By Nicholas Murray Sales Manager, Murray Property

Sydney’s auction market slipped again in the second half of October. Domain’s preliminary clearance rate was 45% for the week ending 24 October, against 70% in the same week last year, and 37% of reported results were withdrawals. In Darlinghurst and Surry Hills, 3 of the 6 auctions that reached a result sold, 2 of them before auction day, and the other 3 were withdrawn. With annual inflation at 4.3% and markets pricing in a rate rise on 3 November, vendors who launch now should plan for a more cautious November.

The fortnight at a glance

Sydney auction measure	Week ending 17 October 2026	Week ending 24 October 2026
Domain clearance rate	51%	45%
Same week last year	70%	70%
Auctions scheduled	847	885
Results reported	572	499
Sold	294	223
Withdrawn	151	184
Passed in	127	92
Median auction price	$1.43 million	$1.65 million

Source: Domain, Sydney auction results. Figures are preliminary.

Other measures	Latest figure
RBA cash rate	4.60%. The next decision is Tuesday 3 November. Markets put the chance of a rise to 4.85% at about 85% (28 October).
Inflation, year to September	4.3%, up from 4.0% in August. Underlying (trimmed mean) inflation is 3.6%.
Sydney home values, September	Down 1.4% for the month, 4.9% for the quarter and 7.0% for the year. Now 8.6% below the February peak.
Sydney listings, September	39,068 properties for sale, up 19.3% on a year ago. New listings are down 9.4%.
Sydney rental vacancy, September	1.8%, up from 1.3% a year earlier
National home sales, September	Down 20.9% on a year ago. The median time on market is 41 days, against 26 a year earlier.

Sources:

What the clearance rates tell us

Here are Domain’s preliminary Sydney clearance rates over the past four weeks:

Week ending	Clearance rate	Same week last year
3 October (long weekend)	53%	72%
10 October	46%	69%
17 October	51%	70%
24 October	45%	70%

Source: Domain, Sydney auction results, preliminary figures for each week

Sydney is now clearing about 20 to 25 points below the same weeks last year. The week ending 17 October looked like a small recovery, but it didn’t last. The week ending 24 October was the lowest of the four, on the biggest auction calendar of the four, with 885 auctions scheduled.

One caution: only 499 of those 885 auctions had reported a result when Domain published its preliminary figures. Preliminary rates are often revised once the late results come in, so treat 45% as a starting point.

Read the headline alongside the withdrawals

In my last update, I said I’d be watching whether 36% withdrawals in the week ending 10 October was a one-off. It wasn’t.

Week ending	Results reported	Withdrawn	Share withdrawn
10 October	483	176	36%
17 October	572	151	26%
24 October	499	184	37%

Source: Domain, Sydney auction results, preliminary

After one quieter week, withdrawals were back above a third of all results. In the week ending 24 October, twice as many auctions were withdrawn (184) as passed in (92).

A withdrawal usually means the vendor decided before auction day not to face the room. Some will sell privately afterwards, and some will relaunch next year. Either way, the headline clearance rate is only half the story. A withdrawn auction counts against the clearance rate, but it tells you something different from a pass-in: the vendor stepped back before the room was tested.

Stock and selling times

There’s still plenty of choice for buyers. SQM Research counted 39,068 properties for sale in Sydney in September, up 19.3% on a year ago. Yet new listings were 9.4% lower than last September. Properties are staying on the market longer, rather than more people deciding to sell.

Cotality’s October Housing Chart Pack shows how much longer selling is taking:

Fewer sales. About 39,700 homes sold nationally in September, 20.9% fewer than a year earlier.
Longer selling times. The median home took 41 days to sell, up from 26 days a year ago.
Bigger discounts. Vendors in the capital cities cut their asking price by an average of 4.4%, the largest discount in five years.

SQM’s October listings figures are due in early November.

Sources: SQM Research, Total Property Listings, September 2026 · Elite Agent, Cotality October Housing Chart Pack (15 October 2026)

Rates, inflation and prices

The week’s big news was inflation. The ABS figures released on 28 October showed annual inflation rising to 4.3% in September, up from 4.0% in August. Underlying inflation, the trimmed mean, rose 1.0% over the September quarter, faster than the 0.8% the RBA had forecast. Housing costs were the biggest contributor, up 5.2% over the year.

After the release, markets put the chance of a rate rise on Tuesday 3 November at about 85%. A rise would take the cash rate from 4.60% to 4.85%, the fifth increase this year. Betashares’ chief economist expects a rise next week and then a pause in December. KPMG’s chief economist said another rise early in 2027 looks more likely than not unless inflation eases.

Cotality’s index showed Sydney home values down 1.4% in September and 4.9% over the September quarter, the largest quarterly fall of any capital city. Values are 8.6% below their February peak. Cotality’s October figures are due on Monday 2 November.

Sources: ABC News, Inflation rate rises to 4.3 per cent in September (28 October 2026) · Cotality, Australian housing values down for sixth straight month · Elite Agent, Cotality October Housing Chart Pack (15 October 2026)

A closer look at Darlinghurst and Surry Hills

Here is how Domain reported results in the 2010 postcode for the week ending 24 October.

Suburb	Property	Outcome	Price
Darlinghurst	2-bedroom apartment	Sold before auction	$1.29 million
Darlinghurst	3-bedroom apartment	Withdrawn	—
Darlinghurst	3-bedroom house	Withdrawn	—
Surry Hills	3-bedroom house	Sold at auction	$1.945 million
Surry Hills	Studio apartment	Sold before auction	Withheld
Surry Hills	3-bedroom apartment	Withdrawn	—

Source: Domain, Sydney auction results, 18–24 October 2026. Four auctions were rescheduled and aren’t included: in Darlinghurst a 2-bedroom apartment, a 3-bedroom house and a 2-bedroom terrace, and in Surry Hills a 2-bedroom terrace.

Darlinghurst

One of three results sold: a two-bedroom apartment, before auction, for $1.29 million. A three-bedroom apartment and a three-bedroom house were withdrawn. Three more auctions were rescheduled, so a busier fortnight may be coming as those campaigns return.

Surry Hills

Two of three results sold. A three-bedroom house sold under the hammer for $1.945 million, the only 2010 sale at auction this week, and a studio apartment sold before auction. A three-bedroom apartment was withdrawn, and a two-bedroom terrace auction was rescheduled.

The three-week picture

Nothing in the 2010 postcode passed in this week. Every unsold result was a withdrawal, in line with the shift towards withdrawals across Sydney.

A single week is a small sample, so it helps to step back. Over the three weeks to 24 October, Domain recorded 14 sales in Darlinghurst and Surry Hills, and 11 of them happened before auction day. That’s the clearest pattern in our local market this spring.

Next door in Potts Point

Potts Point was quiet. Its one reported result, a one-bedroom apartment, was withdrawn, and another one-bedroom auction was rescheduled. In Woolloomooloo, a two-bedroom apartment was withdrawn. In Rushcutters Bay, a three-bedroom apartment sold before auction for $1.65 million, and a one-bedroom apartment passed in on a highest bid of $675,000. For how Potts Point compares with Darlinghurst, see our Potts Point vs Darlinghurst guide.

What late spring means for vendors

The Christmas deadline is two weeks away

To auction before the December slowdown, most campaigns need to launch by about 12 November, aiming for an auction on Saturday 12 December. Our guide to selling before Christmas works through the dates and what to book now. If that timeline is too tight, the same guide sets out the case for waiting until February.

Plan around the rate decision

If the RBA raises rates on 3 November, borrowing capacity falls for every buyer with a mortgage. That won’t stop well-priced property selling, but it is another reason to set your price guide from current evidence rather than from what was achieved earlier in the year.

Price from current evidence, not from February

Sydney values are 8.6% below their February peak, and capital-city vendors are cutting their asking prices by 4.4% on average. A price guide that matches the market from day one is more likely to draw an early offer than one that has to come down later. Our guide to pricing a Darlinghurst property in a softening market explains how.

Decide in advance what a withdrawal means for you

With more than a third of Sydney auctions being withdrawn, it’s worth agreeing with your agent before launch what you’ll do if buyer interest isn’t strong enough by auction week. The options are to switch to private sale, adjust the guide, or relaunch in the new year. If that decision is made calmly in advance, you won’t be making it under pressure in the final days of a campaign.

What buyers should take from the update

Buyers have more time and more room to negotiate than they’ve had all year. Homes are taking longer to sell, discounts are larger, and withdrawn properties often reappear for private sale. A rate rise next week would reduce borrowing capacity, so it’s worth checking your pre-approval now. But the 2010 results show the best-presented homes are still being bought before auction. If you find the right one, waiting for auction day may mean missing it.

What I will be watching over the next fortnight

The RBA on 3 November. Whether rates rise, and what the Bank’s new forecasts say about 2027.
Cotality’s October figures on 2 November. Whether Sydney’s monthly fall has steepened or eased since September’s 1.4%.
Withdrawals. Whether they stay above a third of results.
The rescheduled 2010 auctions. Four local campaigns moved their auction date this week. How they end will say a lot about late-spring demand.
Last call before Christmas. How many 2010 vendors launch by 12 November.

Nicholas Murray’s view

The second half of October didn’t change the picture so much as confirm it. Clearance rates are about 20 to 25 points below last year, withdrawals are back above a third of results, and inflation has given the RBA a reason to raise rates again next week.

Locally, though, the pattern has held. Over the past three weeks, 11 of the 14 sales Domain recorded in Darlinghurst and Surry Hills were made before auction. When the price matches the evidence, buyers act early. When it doesn’t, more vendors are stepping back before auction day rather than testing the room. This week, all three unsold 2010 campaigns were withdrawn.

If you’re deciding whether to launch before Christmas or wait until February, the most useful thing I can do is show you the recent results 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.

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Data sources

Domain, Sydney auction results (weeks ending 3, 10, 17 and 24 October 2026, preliminary)
ABC News, Inflation rate rises to 4.3 per cent in September, raising rate hike expectations (28 October 2026)
Cotality, Australian housing values down for sixth straight month (1 October 2026)
Elite Agent, Australian spring housing market stalls, sales fall 20.9% (Cotality October Housing Chart Pack) (15 October 2026)
SQM Research — Total Property Listings, September 2026 (2 October 2026)
SQM Research — National Vacancy Rates, September 2026 (13 October 2026)

Darlinghurst & Surry Hills Fortnightly Market Update — 30 October 2026