Why Sydney Homes Are Passing In at Auction, And What Smart Buyers on the North Shore Should Do About It
Sydney’s auction market has shifted. After back-to-back interest rate rises, clearance rates have slipped below 58 per cent, well under the 60 per cent threshold that analysts consider a balanced market. For buyers, particularly those looking across Sydney’s Upper North Shore and Lower North Shore, the change in momentum presents a rare window of opportunity.
Cohen Handler buyers’ agent Dan Bramley, who specialises in North Shore property, was recently quoted in The Sydney Morning Herald discussing which types of homes are struggling under the hammer — and why the current conditions reward buyers who know where to look.
Renovation Properties Are Being Hit Hardest
Speaking to The Sydney Morning Herald, Dan explained that properties in less-than-pristine condition are faring particularly poorly this autumn.
“Buyers are very conscious of the time and expenditure required to renovate at the moment. Often, it feels like too much of an undertaking.”
This sentiment is playing out across the North Shore. Earlier this month, Dan attended an auction for a fixer-upper in leafy Northbridge with a $4.5 million guide price. On paper, it ticked every box.
“It ticked all the boxes,” Dan said. “Quiet street, rear northerly aspect, and located in a popular part of the North Shore where homes can sell for up to $10 million.”
The result? A single bid and a passed-in property. The seller had dropped the guide multiple times during the campaign, but it wasn’t enough. The registered bidder they had been counting on to compete aggressively didn’t show up to the auction at all.
Dan said he had noticed other auctions across the North Shore being rescheduled or cancelled entirely, presumably to avoid the embarrassment of properties passing in publicly.
The Pricing Gap Between Vendors and Buyers
The current market isn’t uniformly weak. A-grade homes in prime North Shore locations, think turnkey properties in Mosman, Killara, Pymble, and Wahroonga, are still attracting strong competition. But there is a widening disconnect between what many sellers expect and what buyers are willing to pay.
“The gap between the prices vendors want and where the market sees value is far too big at the moment,” Dan told the The Sydney Morning Herald.
He noted that affordability is top of mind for prospective buyers at all levels, from young families looking at their first North Shore home through to downsizers and upgraders in the $3 million to $10 million range.
This pricing tension is most visible in three categories of property that are consistently underperforming at auction across Sydney right now:
- Properties requiring significant renovation: Buyers are factoring in construction costs that have risen sharply since 2022, along with longer build timelines and the difficulty of securing reliable trades. A home that needs $500,000 in work is being mentally priced as if it needs $700,000, and vendors haven’t adjusted their expectations to match.
- Investment-grade apartments in high-density areas: Investment-grade stock, the type of dwelling typically bought by investors and rented out, is the least likely to sell at auction right now.
- Properties with location compromises: Houses on busy roads, apartments in buildings with known issues, and ex-rentals in otherwise premium suburbs are all passing in regularly.
What This Means for North Shore Buyers
For anyone looking to buy on Sydney’s North Shore, this is a market that rewards preparation, patience, and professional guidance. Here’s why.
Passed-in properties create negotiating leverage
When a property passes in at auction, the power dynamic shifts decisively toward the buyer. The vendor has publicly failed to achieve their price, the selling agent is under pressure to deliver a result, and there is often only one serious buyer left in the room. A skilled buyers’ agent knows how to negotiate these situations to secure outcomes that simply aren’t available in a hot market.
The best North Shore homes still sell, but the second tier is where value lives
The North Shore’s most tightly held pockets, streets with harbour views in Mosman, established family homes in Roseville and Lindfield, prestige estates in Warrawee and Turramurra, continue to attract motivated buyers. But properties that sit just below this top tier are where the real opportunity is right now. A well-located Northbridge home that needs cosmetic work, a solid Killara house on a slightly busier street, a Pymble property with an older kitchen, these are the homes passing in, and they represent excellent long-term value for buyers who can see past the surface.
Off-market opportunities are increasing
As more vendors choose to delay or cancel auctions, many are opting to sell quietly through off-market channels instead. This is where a connected North Shore buyers’ agent becomes essential. At Cohen Handler, our agents maintain deep relationships with selling agents across the Upper and Lower North Shore, giving our clients access to properties that never appear on Domain or realestate.com.au.
How Cohen Handler Helps North Shore Buyers Capitalise
Cohen Handler is Australia’s leading buyers’ agency, and our team has been helping buyers navigate every phase of the Sydney property cycle for over a decade. Dan Bramley and our North Shore specialists understand the micro-markets of every suburb from Neutral Bay to Wahroonga — the streets that hold value, the developments to avoid, the upcoming infrastructure that will reshape demand.
In a market where properties are passing in, the right buyers’ agent doesn’t just find you a home. They identify the opportunities that other buyers overlook, negotiate from a position of strength, and ensure you don’t overpay even when competition is limited.
Whether you’re a first-time buyer looking at the Lower North Shore, a family upgrading to the Upper North Shore, or a downsizer seeking a turnkey apartment in Mosman or Cremorne, our team can guide you through this market with confidence.
‘Ready to make the most of the current market conditions? Contact Cohen Handler’s North Shore team today to discuss your property search.
Frequently Asked Questions
Sydney’s auction clearance rate has fallen below 58 per cent following consecutive interest rate rises by the Reserve Bank of Australia. This means more than four in ten properties listed for auction are failing to sell under the hammer. The drop is most pronounced for properties that require renovation, investment-grade apartments, and homes with location compromises such as busy roads or building defects. Buyers have become more cautious about borrowing costs and are less willing to compete aggressively for anything that isn’t a standout, A-grade property.
A property passes in when bidding at auction fails to reach the vendor’s reserve price. In most cases, the highest bidder then has the first right to negotiate privately with the seller. Properties that are passed in are counted as unsold in official clearance rate data, even if they later sell through private negotiation. For buyers, a passed-in property often represents a strong negotiating position because the vendor knows their price expectation has not been met by the market.
Market conditions on the North Shore are currently favouring well-prepared buyers. While premium, turnkey homes in top streets continue to attract competition, there is significantly less pressure on properties that need work or sit in secondary positions. This creates opportunities for buyers who are willing to look beyond the obvious and negotiate strategically. Historically, the North Shore’s combination of established infrastructure, top-performing schools, and proximity to the CBD has supported long-term capital growth even through periods of short-term market softness.
Sydney’s Upper North Shore stretches from Chatswood and Roseville in the south to Wahroonga and Hornsby in the north, running along the North Shore railway line. Key suburbs include Killara, Lindfield, Roseville, Gordon, Pymble, Turramurra, Warrawee, and Wahroonga. The area is known for its leafy, established streetscapes, generous block sizes, proximity to elite schools such as Knox Grammar, Ravenswood, and Abbotsleigh, and strong family-oriented communities. Median house prices on the Upper North Shore typically range from $2.5 million to well over $5 million depending on the suburb and street.
A North Shore buyers’ agent acts exclusively in your interest — unlike a selling agent, who represents the vendor. They provide access to off-market properties, conduct due diligence on building condition and planning risks, advise on fair market value based on recent comparable sales, and manage the entire negotiation and auction bidding process. In the current market, where many properties are passing in, a buyers’ agent is particularly valuable because they understand how to negotiate post-auction when the power balance has shifted toward the buyer.
As of late March 2026, Sydney’s preliminary auction clearance rate sits around 58 to 61 per cent, depending on the reporting week. This is well below the roughly 74 per cent recorded at the same time in 2025 and reflects the impact of recent RBA rate rises on buyer confidence. Notably, different regions within Sydney are performing very differently. The Northern Beaches, for example, recently recorded a 75 per cent clearance rate, while other areas are significantly lower.