Aussies are doing THIS at home auctions—and Americans can’t understand

A video of a Melbourne property auction recently went viral, leaving many Americans bewildered and curious.

Hundreds of thousands of viewers expressed shock at what they called our 'insane' way of buying homes.

But for Australians, particularly those who remember weekends spent hopping between auctions, this reaction highlighted a striking cultural divide.

Melbourne: The property auction capital

Melbourne has long held the reputation as the property auction capital of the world, with most homes sold via auction throughout the 20th century and continuing today.

What Americans see as chaotic and high-pressure, many Australians view as weekend entertainment—and it has a rich history that explains why.

The tradition dates back to the gold rush era.

Robert Hoddle was appointed as auctioneer for the first sale of crown land in Melbourne on 1 June 1837, selling half-acre allotments for £18 to £78—prices considered expensive even then.

Melbourne has maintained its reputation as a hub for property auctions ever since.

How Australian auctions differ

Property auctions arrived with British settlers, but Australians, particularly in Melbourne, embraced them with unique enthusiasm.

Unlike most US auctions, where properties are sold in bulk at central locations, Melbourne house auctions occur individually at the property site and are promoted as major events by real estate agents.

Americans often find the auction system 'insane' because of its different cultural context.

Property auctions in the US are usually linked to financial distress, including foreclosure sales, tax defaults, or bulk liquidations, which historically carried a stigma.

Seeing hundreds of people gathering in a Melbourne driveway, cheering as bids climb past $1.32 million, is completely foreign to that experience.

The viral video showed auctioneer Marcus Fregonese taking rapid-fire bids from an enthusiastic crowd at a Sunshine West property.

For Australians, this is normal Saturday entertainment.

For Americans, it looked like organised chaos.

Understanding the auction experience

Australian property auctions can be bewildering for the uninitiated.

Bidding is public, and if the hammer falls and you are the highest bidder, you must sign the contract immediately.

No further bids can be made, and the highest bidder is legally obliged to sign and exchange contracts on the spot.

The theatre of Australian auctions

For many Australians, auctions are a form of theatre.

Property expert Michael Yardney explained that 'Australians love going to auctions—they see it as a bit like buskers and street theatre, and they love to see what's happening to properties in their locality.'

This social aspect is especially strong among older Australians who recall attending auctions as a regular weekend pastime.

Numbers behind the spectacle

Despite the viral nature of the footage, not all Australian homes are sold at auction.

Michael Yardney noted that only a fraction of properties actually go under the hammer, with Melbourne recording about 40,000 auctions in 2014, a record year.

Auctions are most popular in cities like Sydney and Melbourne, but practices vary across the country.

The timing is particularly relevant, with Australian house prices hitting a record national average of $835,000 in August 2024, up 5.3 per cent from the previous year.

New initiatives allowing first-home buyers to purchase with just a 5 per cent deposit could make weekend auctions even more competitive.

A uniquely Australian experience

The viral video captured a uniquely Australian tradition—turning a major financial transaction into a community event.

While other countries conduct property sales behind closed doors, Australians gather in driveways to witness the drama unfold.

For international viewers, this might seem 'insane,' but it reflects cultural values of transparency, community involvement, and a love of spectacle.

If the drama and high stakes of property auctions caught your attention, there’s another real-life story that shows just how complicated home ownership can get.

Sometimes, the challenges aren’t about bidding against others at an auction, but about unexpected claims and legal issues that can arise even after decades of ownership.

This next story highlights a case where long-term property ownership was nearly derailed by unforeseen complications, offering valuable lessons for anyone navigating the housing market.

Read more: He spent 35 years building his dream property—then someone else tried to claim part of it

Have you attended a property auction recently, or do you recall the weekend auction scene from decades past?