Combined capitals clearance rate falls to 48.2%, the lowest since June

The combined capitals preliminary clearance rate fell further last week to 48.2%. This was the lowest result since the week ending June 21st (47.4%) and the second-lowest preliminary clearance rate so far this year. Last week's cash rate increase likely contributed to the weaker result, as prospective buyers faced reduced borrowing capacity and subdued confidence.

Lower clearance rates in Brisbane, Adelaide and Canberra brought the combined result down. Brisbane's preliminary clearance rate was 25.6%, Adelaide's 41.5%, and Canberra's 41.7%. In Sydney and Melbourne, preliminary clearance rates were above 50%, at 55.7% and 50.6%, respectively.

Auction volumes in Melbourne rose 136% to 670, after the Grand Final long weekend kept numbers low the previous week. Compared with a year ago, they were 42.4% lower. The preliminary clearance rate was 50.6%, up 1.9 percentage points on Grand Final week. Over the first five weeks of spring, it averaged 55.4%, matching the winter average.

More than half of Sydney's auctions were successful, with the preliminary clearance rate rising 2.1 percentage points to 55.7%. The long weekend reduced auction volumes to 304, a fall of 61% from the week before. Auction volumes were also 40.5% below the level of a year earlier.

A decline of 16.9 percentage points left Brisbane's preliminary clearance rate at 25.6%. This was the third time this year that it has fallen within the 20% range. Auction volumes were largely unaffected by the long weekend, with 139 auctions held compared with 140 in the previous week. Against the corresponding week last year, the number of auctions was 6.1% lower.

Adelaide held 69 auctions, 32% fewer than the previous week but 6.2% more than the same week last year. Its preliminary clearance rate of 41.5% was the fourth-lowest result this year and below the spring average to date of 45.8%.

The largest annual fall in auction volumes of any capital was in Canberra, where the 31 auctions held were 46% fewer than the same week last year. The preliminary clearance rate dropped 12.2 percentage points to 41.7%, which put it 5.6 percentage points below the spring average to date of 47.3%. Auction volumes also fell 62% from the previous week.

There were eight auctions in Perth and two in Tasmania.