Melbourne has always taken auctions more seriously than anywhere else in Australia. It’s cultural—Saturday auctions are family outings, neighbours watch from footpaths, the whole theatre of it is part of the property experience.

So when Melbourne starts changing how auctions work, the rest of the country should pay attention. What I’ve seen emerging there over the past year signals where all Australian markets are heading.

The Digital Auction Platform Explosion

Melbourne has become the testing ground for digital auction platforms, and adoption has accelerated far beyond what I expected.

Openn Negotiation has grown from a Perth startup to a genuine force in Melbourne. Their transparent online bidding format—where buyers see competing offers and can respond in real-time—challenges the traditional sealed-bid and in-room auction formats.

Market Buy and Auction Now have launched Melbourne-focused platforms. Even traditional auction houses like Jellis Craig and Marshall White have built proprietary digital bidding options.

The numbers tell the story: digital auction participation in Melbourne increased 340% between 2022 and 2024. Not all of these replace in-person auctions—many run hybrid formats—but the trajectory is clear.

Why Melbourne First?

Several factors make Melbourne the natural laboratory for digital auction innovation.

Auction density: Melbourne conducts more residential auctions than any other Australian city. According to CoreLogic data, the volume creates enough transaction flow to test and refine digital platforms.

Buyer competition: Melbourne’s auction clearance rates, tracked by both Domain and CoreLogic, have been strong, meaning multiple buyers competing for properties. Digital platforms work best when there’s genuine buyer competition to harness.

Vendor sophistication: Melbourne vendors expect auction campaigns. They understand the process and are open to innovations that might improve outcomes.

Weather reality: Melbourne’s notorious weather makes outdoor auctions uncertain. Digital alternatives eliminate the “auction rained out” problem.

What’s Actually Working

Not every digital auction experiment has succeeded. Here’s what I’ve seen gain genuine traction:

Hybrid Live-Streaming

The most successful format combines physical presence with remote participation. Bidders can attend in person or bid through an app while watching a live stream.

This works because it preserves the auction theatre that vendors love while removing the geographic barrier that excludes interstate or time-constrained buyers.

I spoke with an agent in Toorak who sold a $4.2 million property to a bidder watching from Singapore. The buyer had inspected once, done a private virtual tour, and had their solicitor review the contract remotely. Without the hybrid format, they likely wouldn’t have participated.

Transparent Bidding Periods

Openn’s format—where the property stays “open” for bidding over several days with all offers visible—has found a niche for specific property types.

It works particularly well for properties where the likely buyer pool is spread out (regional properties with Melbourne buyer interest) or where multiple buyers are expected but coordination for a single auction time is difficult.

It doesn’t work as well for premium prestige properties where privacy matters or for markets with limited buyer competition.

Pre-Auction Digital Offers

Some Melbourne agencies now systematically collect digital expressions of interest before auction day. Buyers submit their intended bidding range through a platform, non-binding but indicative.

This intelligence shapes vendor expectations and auction strategy. An agent knowing they have four registered bidders all planning to start above $1.5 million can set reserves confidently.

What’s Not Working

Several approaches have struggled to gain traction:

Fully virtual auctions without any physical component have disappointed. The energy and psychology of in-room auctions drives bidding behaviour in ways that pure video calls don’t replicate.

Blockchain-based auction records were briefly hyped but haven’t solved any actual problem that vendors or buyers care about. The technology was interesting; the application wasn’t.

AI auctioneers were trialled by one platform and quickly abandoned. Turns out human auctioneers reading the room and building momentum matter. Who knew.

What This Means for Sydney

Sydney’s auction culture differs from Melbourne’s. We don’t have the same Saturday morning spectacle tradition. Auctions here are often more businesslike, less theatrical.

But the underlying dynamics pushing Melbourne toward digital auctions exist here too:

• Interstate buyer pools, especially for Eastern Suburbs and Northern Beaches
• Time-poor buyers who struggle to attend Saturday morning auctions
• Vendor desire for maximum buyer participation
• Agent interest in demonstrating transparency

I expect Sydney agencies to adopt proven Melbourne platforms rather than develop their own. Openn has already expanded here. Others will follow.

The Inner West and Eastern Suburbs—where auction volumes are highest—will likely lead adoption. Western Sydney, where private treaty dominates, may lag.

Implications for Agents

The shift toward digital auctions changes several aspects of agent work:

Pre-auction preparation intensifies: Digital platforms require more structured buyer registration, verified finance, and contract review before bidding opens. The administrative load increases.

Vendor reporting improves: Digital platforms generate rich data on buyer engagement, bidding patterns, and campaign performance. Vendors will expect this transparency.

Auction day tactics evolve: Managing remote bidders while maintaining in-room energy requires new skills. The best auctioneers are adapting; others will struggle.

Settlement processes tighten: Digital platforms often connect to conveyancing and settlement systems. The entire transaction chain is digitalising, not just the auction.

The Vendor Perspective

I’ve spoken with Melbourne vendors who’ve used digital auction formats. Their feedback clusters around a few themes:

Transparency appreciation: Seeing buyer interest quantified before auction day reduces anxiety. Even if the news isn’t great, knowing is better than guessing.

Process comfort: First-time vendors often find digital platforms less intimidating than traditional auctions. The mystery is removed.

Price confidence: When a property sells through a transparent digital process, vendors feel confident they achieved market price. No nagging doubt about what they might have got with one more bidder.

Where It’s Heading

My prediction: within three years, most Melbourne auctions will have digital participation options, and Sydney will be following a year behind.

Pure in-person auctions will become a prestige positioning choice—a statement that your property is important enough to demand physical attendance. Like how some luxury brands refuse to sell online.

The typical auction will be hybrid, with sophisticated platforms managing both in-room and remote bidders. The technology will fade into the background as it becomes standard infrastructure.

For agents, the question isn’t whether to engage with digital auctions but when and how. Early movers are building expertise that will compound as adoption spreads.

Melbourne is showing the path. The rest of Australia will follow.

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Linda Powers divides her PropTech consulting work between Sydney and Melbourne markets. She spent 25 years in Sydney real estate and closely tracks technology adoption across Australian capitals.