Auction clearance rate hits 19-week high across capitals

Cotality reported a combined capital-city auction clearance rate of 52.6% for the week ending 13 September, the highest in 19 weeks.

Auction volumes also increased, with 1,585 homes taken to auction across the capitals, up from 1,431 the previous week. Even so, activity in the larger markets remained below year-ago levels, with Melbourne and Sydney both recording much lower auction numbers than in the same period last year.

Melbourne remained the busiest auction market, hosting 710 auctions compared with 656 a week earlier. Its clearance rate rose to 57.3% from 54.6%, the city's strongest result since late March. However, auction volumes were still 42.7% lower than the 1,240 recorded a year earlier.

Sydney posted a clearance rate of 52.8%, up slightly from 52.5% the previous week, across 548 auctions. That was the city's highest clearance rate in seven weeks, but auction activity remained about 33.9% lower than the 829 auctions held a year earlier.

Together, Melbourne and Sydney accounted for close to four in five auctions across the combined capitals last week, giving their results a strong influence on the national aggregate.

Elsewhere, Adelaide recorded the largest week-on-week improvement in clearance rates, clearing 49.4% of 79 auctions, up from 36.2% the previous week.

Brisbane remained weaker by comparison, though it showed some improvement. The city recorded a clearance rate of 38.5%, its strongest result since mid-June. Auction numbers rose 29.0% week on week to 169 and were 16.6% above the 145 held a year ago.

Canberra held 58 auctions and recorded a clearance rate of 43.1%, up from 37.1% a week earlier. Perth hosted 21 auctions, with eight successful sales, while Tasmania recorded none.

The pattern points to a market in which sellers are still proceeding with auction campaigns, but many are failing to achieve reserve prices. The data also suggests buyers remain active where vendors adjust expectations to current conditions.

"The growing prevalence of pass-ins, rather than withdrawals, demonstrates that vendors continue to take properties to auction, yet nearly half of those offered fail to meet the reserve price," said Annabelle Mezieres, Economist, Cotality.

"The week's result suggests vendors meeting the market are still finding buyers, though in far fewer numbers than a year ago," Mezieres said.

The latest figures also highlight uneven conditions across the capitals. While some markets posted stronger weekly results, clearance rates remained well below year-ago levels and varied sharply from city to city.

Spring listings

Looking ahead, auction activity is set to rise further this week, with 1,903 homes scheduled to go under the hammer across the capitals. That is 20.1% higher than last week's 1,585 auctions, although still 27.9% lower than the 2,638 recorded in the same week last year.

Melbourne is expected to remain the largest market, with 880 scheduled auctions, up 23.9% from the previous week but 32.9% lower than a year earlier. Sydney is expected to host 659 auctions, a 20.3% increase week on week and 28.0% below the level seen in the corresponding week last year.

Brisbane is the only capital running ahead of last year's volume, with 178 auctions scheduled, 4.1% above the 171 recorded in the comparable week a year earlier. Adelaide is expected to post the sharpest weekly increase, with 118 auctions scheduled compared with 79 last week, while Canberra is set for 59 auctions and Perth for nine. Tasmania is again expected to record none.

Mezieres said the lift in scheduled spring auctions followed the winter slowdown, but cautioned that broader conditions remained subdued. "Alongside softer auction clearance rates (well below their decade average), rising total property listings and broader macroeconomic headwinds, the lower level of auction activity suggests that vendors remain cautious and are continuing to favour private treaty over auction as a method of sale, as buyers have more leverage," Mezieres said.