Combined capitals preliminary clearance rate falls to 47.4%, lowest since April 2020

Across the combined capitals, the preliminary auction clearance rate fell to 47.4% last week, its lowest reading since the final week of April 2020. The rate has held below 60% in ten of the past 12 weeks, but last week was the first time it fell under 50% since the early pandemic period. Digging deeper into the data, 23.6% of scheduled auctions were withdrawn, and nearly half (48%) sold prior to going under the hammer. This could mean that vendors are unwilling to test the market under auction conditions.

Auction volumes across the capital cities remained relatively low. Only 1,869 capital city homes went to auction, a 10.8% drop on the previous week and 6.7% fewer than the same week a year ago. That made it the fifth consecutive week auction numbers have come in below year-ago levels.

Melbourne’s auction market recorded a weaker result last week, with 910 homes taken to auction, down roughly 6.7% from two weeks ago and approximately 1.8% lower than the same week last year. The preliminary clearance rate fell to 50.6%, from 57.6% the previous week, marking the city’s weakest early result since September 2021, when Melbourne was in its sixth COVID lockdown.

Similarly, Sydney’s auction market lost momentum last week, with auction volumes falling to 645, down 17.5% on the previous week and 17.1% below the same time last year. The preliminary clearance rate was also noticeably lower compared to previous weeks, falling to 47.4% from 52.8%, its lowest early result since the week ending 19 April 2020.

Brisbane experienced another soft auction result last week, with its preliminary clearance rate at just 33.3%. Brisbane held142 auctions, unchanged from the previous week but 6.6% lower than the same time last year. It was the fifth consecutive week Brisbane’s preliminary clearance rate has fell below 50%, although the result was slightly higher than the 31.9% recorded three weeks ago.

Adelaide’s auction market also lost momentum last week, with the preliminary clearance rate falling to 40.0%, its weakest early result since May 2020. Across the capital, 91 homes were taken to auction, down 14.2% on the previous week but 18.2% higher than the same time last year.

The ACT was one of the few markets to record an improvement in clearance rates last week, with the preliminary result rising by 1.4 percentage points to 47.1%. Auction volumes eased to 65, down 14.5% from a week earlier, but were in line with the same time last year. Perth remained subdued, with only 16 auctions held and 40.0% reporting a successful result, while Tasmania had no scheduled auctions.

Auction volumes look set to ease further over the coming weeks, partly a seasonal trend but also likely in response to weaker selling conditions. Around 1,800 auctions are scheduled this week, dropping to less than 1,500 the following week.