Sydney’s property market has witnessed a dip in auction clearance rates, with the preliminary clearance rate dropping below 70% for the first time since mid-March. The combined capitals experienced an 11.7% decrease in auction activity this week, with 1,742 auctions taking place. Despite this decline, the week’s auction numbers are in line with those two weeks ago and higher than the same period last year.
The combined capital’s current preliminary clearance rate is 71.0%, rising for the first time in three weeks. This is an 80 basis point increase compared to last week’s preliminary rate of 70.2%, which was later revised to 64.9% in the final numbers. In comparison, the same week last year reported a final clearance rate of 56.6%.
In Sydney, 702 homes went under the hammer this week, marking a 6.3% decrease from the 749 the previous week. With 544 results collected, Sydney’s preliminary clearance rate stands at 69.1%. Notably, there is also an increase in Sydney’s withdrawal rate, from 11.9% last week to 16.9% this week, while the proportion of properties passed in at auction dropped to 14.0% from 21.4% before. Comparatively, last year, 56.4% of the 480 auctions held in Sydney were deemed successful.
Melbourne experienced a 12.5% decrease in its auction numbers this week, with 761 homes being auctioned across the city. As of now, 71.9% of the 604 collected results have returned a successful outcome, raising Melbourne’s clearance rate above 70% after dipping below it for the past two weeks. Last week’s preliminary clearance rate stood at 69.9% (later revised to 63.7% in final figures), and during this time last year, there were 619 auctions and a final clearance rate of 58.4%.
Adelaide maintained its reputation as the busiest auction market among the smaller capitals, despite a 7.9% decline in activity this week. A total of 105 homes were taken to auction in the city, followed by Brisbane with 83 and Canberra with 82 homes. Brisbane noted its highest preliminary clearance rate since early June, standing at 76.9%, while Canberra’s preliminary clearance rate increased by 80 basis points to 71.4%. On the other hand, Adelaide’s clearance rate dipped by 6.1 percentage points to 76.7%. Meanwhile, Perth recorded two successful auction results out of five, and one out of two auctions held in Tasmania was deemed successful.
Looking ahead, auction activity is predicted to bounce back, with nearly 2,000 capital city homes currently set for auction. These property market indicators highlight the fluid dynamics in place, revealing both ups and downs for Australia’s capital cities. By staying informed and keeping a keen eye on these trends, potential buyers and sellers can make better decisions when navigating the ever-changing property market landscape.
