Clearance rates reach highest level since June 2023 amid limited listings
Auction activity across Australia’s largest cities accelerated in August, with clearance rates climbing to their highest point in more than two years, according to new figures from Domain.
Combined capital city auction clearance rates reached 69.3% last month, the strongest result since June 2023. This increase coincided with a sharp rise in auction volumes, marking the third-highest August on record for the number of properties going under the hammer.
Sydney and Melbourne led the national trend, each recording their highest clearance rates in over two years. In contrast, Brisbane was the only city where clearance rates declined year-on-year.
“August signalled a powerful return of momentum to the Australian property market,” said Nicola Powell (pictured right), chief of research and economics at Domain. “While supply slowed over winter, buyer demand remains strong, with auction clearance rates hitting their highest levels in more than two years.
“Buyers are vying for a smaller pool of available properties across Australia, with the spring market opening with the slowest new supply across the combined capitals since 2022. Strong buyer competition is a trend we will see continue as we enter what we expect to be a supercharged spring selling season.”
In Sydney, new property listings dropped to a four-month low, while overall supply fell for the third straight month. The city’s clearance rate saw the largest monthly gain among all capitals, reaching its highest level since June 2023. The vacancy rate dropped to 0.9%, the lowest August figure since records began.
Melbourne experienced a monthly rise in both new and total supply, though both measures remained below last year’s levels. The city’s clearance rate increased to its highest since June 2023, with the largest annual improvement among the capitals. Houses in Melbourne took longer to sell, with days on market reaching their highest since December 2020.
Brisbane’s new listings fell to their lowest for any August on record, and total supply declined for a third consecutive month, reaching a new low. The vacancy rate was 0.7%, the lowest August result since 2022.
Adelaide saw both new and total supply fall to their lowest points of the year. The city’s clearance rate climbed to an almost two-year high, while houses sold faster, with days on market at a seven-month low. The vacancy rate dropped to 0.5%, though this was the highest August figure since 2021.
In Canberra, clearance rates reached their highest since June 2023. New listings increased in August, but the annual rate of decline deepened. Total supply fell for the third month in a row, and houses remained on the market for the longest period in five years. The vacancy rate held steady at 1.2%, the lowest August result since 2022.
Perth recorded record-low new and total supply for August. Houses took longer to sell, with days on market at a two-year high, while discounting fell to its lowest since 2006. The vacancy rate was 0.5%, matching last year as the highest August result since 2021.
Hobart’s total supply dropped to its lowest in over three years, and new listings reached a record low for August. Houses took nearly a year to sell on average. The vacancy rate was 0.3%, the tightest August figure since 2017, making it one of the most competitive rental markets.
Darwin’s new supply was at its second-lowest for August, while total supply hit a record low. Distressed listings increased but remained below historical averages. The vacancy rate was steady at 0.3%, the lowest on record for August, indicating a highly competitive rental market.
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