Auction clearance rate falls to lowest since April 2020

Cotality said the combined capitals preliminary auction clearance rate fell to 47.2% last week, the lowest preliminary result since April 2020.

The decline came as 1,735 auctions were held across the combined capitals, down 7.3% from the previous week and 17.7% lower than a year earlier. Melbourne's seasonal slowdown ahead of the Melbourne Cup holiday weighed on the national total, while every other capital recorded a rise in auction volumes.

The previous week's combined capitals preliminary clearance rate was 48.4%. So far this spring, the average preliminary clearance rate has been 51.0%, compared with a winter average of 52.3%.

Sydney recorded the busiest auction week among the capitals, with 731 homes taken to auction. That was up 17.3% from the previous week and the city's highest weekly volume since the last week of September, although still 33% lower than a year earlier.

Sydney's preliminary clearance rate rose 5.6 percentage points to 53.8%, from 48.2% a week earlier, despite broader weakness across the combined capitals.

Melbourne held 514 auctions, down 38% week on week but slightly above the 502 recorded in the same week last year. Its preliminary clearance rate slipped to 49.5%, the second-lowest preliminary result so far this year, according to Cotality.

Brisbane weakens

Brisbane posted the weakest preliminary clearance rate among the capitals at 26.2%. Auction volumes rose almost 20% from the previous week to 238, the city's second-highest weekly total this year after the 279 recorded in the final week of March.

The total was also 10.7% higher than a year earlier. It was the fourth time in five weeks that Brisbane's preliminary clearance rate had fallen below 30%.

Adelaide recorded 144 auctions, up 3.6% from the previous week and level with the same week last year. Its preliminary clearance rate rose 4 percentage points to 46.5%.

That left Adelaide slightly above its spring average to date of 44.6%. Even so, the city has now remained below a 50% preliminary clearance rate for six consecutive weeks.

Other capitals

In the ACT, 81 auctions were held, up 35% week on week but 39% lower than a year earlier. The territory's preliminary clearance rate was 38.9%, its fourth-lowest result of the year so far.

Perth recorded a preliminary clearance rate of 35%. Across Tasmania, only three auctions were held last week.

Annabelle Mezieres, Economist, Cotality, said buyers were facing the likelihood of another rate hike this week.