Preliminary auction clearance rate falls to lowest since April 2020

Across the combined capitals, 1,735 auctions were held last week, down 7.3% on the previous week and 17.7% lower than at the same time last year. Melbourne’s seasonal decline ahead of the Melbourne Cup holiday contributed to the overall fall, with 514 auctions held, down 38% week on week. Every other capital recorded an increase in auction volumes.

The combined capital cities preliminary clearance rate fell to 47.2%, from 48.4% the previous week. This was the lowest preliminary clearance rate since April 2020, with buyers facing the likelihood of another rate hike this week. The average preliminary clearance rate through spring to date has been 51.0%, slightly below the winter average of 52.3%.

Sydney held the most auctions last week, with 731 homes going under the hammer, up 17.3% on the previous week and the highest weekly volume since the last week of September. Despite the increase, auction volumes were 33% lower than at the same time last year. The preliminary clearance rate rose 5.6 percentage points to 53.8%, from 48.2% the previous week.

A 38% week-on-week decline brought Melbourne’s auction volumes to 514 last week, albeit slightly above the 502 held a year earlier. The fall in auction volumes from the previous week came ahead of the Melbourne Cup holiday. Meanwhile, the preliminary clearance rate declined to 49.5%, the second-lowest preliminary result so far this year.

Despite an almost 20% rise in auction volumes, Brisbane’s preliminary clearance rate was just 26.2%, the lowest among the capitals and the fourth result below 30% in five weeks. The 238 auctions held were 10.7% more than a year earlier and the second-highest weekly volume this year, behind the 279 recorded in the final week of March.

A 3.6% weekly increase brought Adelaide’s auction volumes to 144, matching the same week last year. The preliminary clearance rate edged higher by 4 percentage points to 46.5%, slightly above the spring average to date of 44.6%, but remained below 50% for a sixth consecutive week.

In the ACT, 81 auctions were held last week, 35% more than the previous week but 39% fewer than at the same time last year. The preliminary clearance rate was 38.9%, the fourth-lowest result so far this year.

Perth’s preliminary clearance rate stood at 35%, while just three auctions were held across Tasmania.