Auction volumes lift 6.6% as clearance rate eases to 52.4%

Auction clearance rates eased last week, with preliminary results coming in at 52.4% for the combined capital cities. Last week's clearance rate was lower than the previous week's 53.2%. The softer result followed a brief improvement through mid-August, when preliminary clearance rates rose above the 55% mark over the weeks ending August 9 and August 16.

The lower preliminary clearance rate occurred alongside increased auction activity last week. A total of 1,482 capital city homes went to auction, up 6.6% from the previous week. Auction volumes are expected to continue rising as the weather improves, with approximately 1,500 homes scheduled for the first week of spring and over 1,600 the following week. This seasonal increase will test buyer demand, though activity is unlikely to match last year's levels.

Auction volumes remain well below last year's levels, down 32.3% compared to the same week last year. This softer trend defined much of this winter's auction market, with capital city volumes ending the season about 18% lower than winter 2022. The annual decline was concentrated in the largest markets, with winter volumes down approximately 25% in Sydney, 19% in Melbourne, and 14% in the ACT. In contrast, Perth, Adelaide, and Brisbane saw increases of 20%, 6.9%, and 0.4% respectively.

In Melbourne, 653 homes went under the hammer, the highest of any capital city last week, up 9.9% from the week prior, though almost 40% fewer than a year ago. The preliminary clearance rate eased for a third week in a row to 54.9%, down from 55.4% the previous week, and that was below the recent peak of 60.8% recorded over the week ending August 9.

Sydney’s preliminary clearance rate has remained above 55% for four consecutive weeks, easing slightly to 56.3% from 56.6%. The city held 516 auctions, the second-highest among the capitals, up 8.2% from the previous week but 36.3% lower than a year ago.

Among the smaller capital cities, Brisbane again had the most volume, with 149 homes taken to auction, 1.3% down on the previous week and 21.1% up on the same week last year. The preliminary clearance rate fell to 31.5%, down 8.9 percentage points from 40.4% the previous week and the lowest early result since the first week of July.

Adelaide's preliminary clearance rate was 50.8%, a decrease of 4.1 percentage points from the previous week. Auction volumes in the city increased by 16.7% from the previous week to 105, which is 1.9% higher than a year ago.

The smaller markets held few auctions, in the ACT 48 auctions took place, down by 27% from the previous week and 24% from a year ago, though its preliminary clearance rate edged up 30 basis points to 41.7%. Perth held 9 auctions and only 2 auctions took place in Tasmania.