Auction clearance rates fall to ten-week low across capitals

Auction volumes across Australia's combined capital cities fell 22.4% last week, while the weighted average preliminary clearance rate dropped to 50.3%, its lowest level in ten weeks.

A total of 1,428 homes went to auction across the capitals, down 17.7% from the same period a year earlier. Clearance rates weakened in most cities, with Melbourne and Adelaide among the sharpest fallers.

Sydney recorded the highest auction volume, with 790 homes taken to market. That was 39% higher than the previous week but 32% lower than a year earlier, making it the city's busiest auction week since the final week of May, when 977 auctions were held.

Sydney's preliminary clearance rate slipped 0.6 percentage points to 53.6%, though it remained slightly above the city's winter average of 52.9%.

Activity is expected to slow sharply this week, with only 390 auctions scheduled ahead of the Labour Day long weekend. The earlier rise in listings suggests vendors brought forward campaigns before the holiday break.

Melbourne heavily influenced the national result, with its preliminary clearance rate falling 7.5 percentage points to 48.8%. That was the city's lowest preliminary result since early September 2021.

Only 286 auctions were held in Melbourne over the long weekend, 69% fewer than the previous week but still 28% higher than during the same Grand Final week last year.

Sharp falls

Adelaide also posted a sharp decline. The city held 103 auctions, down 8.0% from the previous week but up 32.1% from a year earlier.

Its preliminary clearance rate dropped 18.9 percentage points to 39.3%. It was only the second time this year Adelaide's preliminary clearance rate had fallen below 40%.

Brisbane was one of the few cities to record an improvement in early success rates, with its preliminary clearance rate rising 5.1 percentage points to 42.6%.

Even so, Brisbane's market remained subdued by recent standards. The city has recorded a preliminary clearance rate below 50% in 18 of the past 19 weeks.

Brisbane hosted 144 auctions, down 18.2% from the previous week and 2.7% lower than a year earlier.

Canberra's preliminary clearance rate fell 3.7 percentage points to 53.8%, though that still left the capital above its winter average of 45.4%.

Auction numbers in Canberra moved in the opposite direction, rising 46% from the previous week to 82 homes. Compared with the same time last year, however, volumes were down 29%.

Elsewhere, Perth recorded 21 auctions and a preliminary clearance rate of 42.9%. Tasmania recorded just two auctions for the week.

The latest figures add to signs of a softer auction market heading into the holiday-affected period, particularly in Melbourne and Adelaide. While Sydney remained the busiest market by volume, its clearance rate also eased and sat only narrowly above its winter average.

Across the capitals, lower volumes and weaker early sales results suggest buyers remained cautious as more vendors tested the market. The 50.3% weighted average preliminary clearance rate was the weakest combined-capital outcome in ten weeks.