Major Aussie property market in danger of plunging into a painful correction as auction rates tumble: 'Steak knives on the table'

By SARAH BROOKES - SENIOR REPORTER, AUSTRALIA Published: 00:20, 25 August 2026 | Updated: 00:29, 25 August 2026 One of Australia's hottest property markets is in danger of plunging into a painful correction. Echoing warning signs seen in Sydney and Melbourne before prices fell sharply, Brisbane's auction clearance rate has dropped to just 21 per cent. Buyers' agent Glenn Price said Brisbane's clearance rate had fallen from 49 per cent a year ago, compared with 54 per cent in Sydney and 57 per cent in Melbourne. 'This isn't a Brisbane collapse. It's a delayed correction, and it's finally arrived,' he told the Daily Mail. 'Sydney and Melbourne have both been here before. When interest rates surged in 2022, clearance rates crashed to similar levels and prices subsequently fell by double digits in Sydney and high single digits in Melbourne. 'Brisbane just partied longer than everyone else, and the invoice was always going to arrive eventually.' Mr Price said he had been to at least half a dozen auctions in the past month that didn't sell under the hammer. 'I'm starting to expect it, turn up, watch it pass in, then do the deal afterwards anyway,' he said.  Buyers' agent Glenn Price (pictured) is advising buyers to make an offer now  New forecasts suggest falling home prices could strip as much as $1.3trillion from Australia's total household wealth after Treasurer Jim Chalmers (pictured) handed down the May Budget  The auction clearance rate has fallen dramatically in Brisbane (pictured) in the wake of tax reforms on property  'Some vendors are so desperate they'll even throw in a free set of steak knives. 'I’ve done plenty of deals where the vendor wouldn’t budge on price, so we’d ask for the furniture or whitegoods to sweeten the deal.'  Mr Price said what had changed was the reason vendors were offering sweeteners. 'It’s not stubborn vendors anymore, it’s either vendors who need to sell fast because they’re already locked into their next place, or vendors who fear the market will keep slipping and would rather lock in a price now than risk waiting for it to fall further,' he said. 'Either way, they’re prepared to offer whatever it takes to get a deal done, they’ll throw in a mower or whatever’s needed. 'Desperate times call for desperate measures. 'My advice to buyers right now - steak knives are on the table - make the offer.' Real estate commentator Tom Panos said changing buyer behaviour was another sign the market had cooled, pointing to a recent $1.7million sale in which the successful buyer was allowed to make the purchase conditional on selling their own home first. Real estate commentator Tom Panos (pictured) said changing buyer behaviour was another sign the market had cooled 'Two years ago, in a booming seller's market, you could walk in and say, "I'll give you your price, but it's subject to me selling my house" and the vendor would have just told you to go away,' he said.  'Properties are taking longer to sell. Vendors are becoming more negotiable, and buyers have something they haven't had for a long time: leverage.' Brisbane has been Australia's standout capital city performer in recent years, recording some of the strongest price growth in the country, making any slowdown particularly significant. The Queensland capital's weakening auction market comes as economists warn Australia's $12.7trillion housing market, spanning more than 11million dwellings, is facing mounting pressure after Labor's property tax shake-up, with investors growing increasingly wary and billions of dollars in household wealth at risk. New forecasts suggest falling home prices could strip as much as $1.3trillion from Australia's total household wealth. Modelling by Primara Research measured the impact of recent ANZ forecasts predicting a 10.6 per cent fall in national property prices over the next two years, finding such a decline would make the country significantly poorer. The report noted that almost 57 per cent of Australia's household wealth is tied up in residential property, making any housing downturn a major drag on the broader economy.