Capital city auction volumes lift 15.6% as clearance rates ease to 54.0%

The preliminary clearance rate across the combined capital cities decreased by 4.6 percentage points last week to 54.0%, following two consecutive weeks of increases. This decline coincided with a 15.6% rise in auction volumes and deteriorating interest rate expectations prior to the Reserve Bank's monetary policy board meeting on 29 September. Despite the decrease, auction markets remained above the winter average of a 52.3% preliminary clearance rate.

Auction volumes had, for the sixth week in a row, fallen by more than 30% compared to the same time last year. This shortfall was due to fewer new listings coming onto the market in the spring and also because fewer vendors decided to sell by auction, since clearance rates have been low and there are few registered bidders.

Melbourne held 900 auctions, almost half (49%) of all capital city auctions, up 26.8% from the previous week. Its preliminary clearance rate slumped 7.0 percentage points to 56.3%, the weakest in three weeks. Auction volumes are set to fall sharply this week, with around 280 currently scheduled because of the AFL Grand Final long weekend.

Across Sydney, 577 homes went to auction, a 5.3% rise in auction volumes on the week, though that was 36.9% fewer than a year ago. Auction activity is expected to rise sharply this week, with about 935 homes currently scheduled to go under the hammer. If all the scheduled auctions proceed, it would be the highest weekly auction volume since late May, when 977 were held. The preliminary clearance rate was 54.2%, down 5.4 percentage points on the previous week and the lowest early success rate in seven weeks.

In Brisbane, the preliminary clearance rate was 37.5%, a decline of 4.1 percentage points from the previous week and closely aligned with the winter average of 37.2%. Auction volumes rose 3.0% to 174, up 1.8% from the same week last year. Adelaide experienced a significant 43% increase in auction volumes, reaching 113 auctions. The preliminary clearance rate also improved, rising by 2.6 percentage points to 58.2%, the city’s strongest early result in five weeks.

In Canberra, 58 auctions were held, consistent with the previous week but 44% lower than the corresponding week last year. The preliminary clearance rate increased by 10.6 percentage points to 57.5%, positioning it 12.1 percentage points above the winter average of 45.4%.

Ten auctions were held in Perth, half of them reporting a successful result so far, while Tasmania had none.