Activity weakens across most capital cities, but bounce back expected this week
The combined clearance rate for residential auctions across Australia's major cities has fallen below 70% for the first time since mid-June, signalling a momentary drop in market momentum.
Data released by Cotality reveals that 2,988 properties were put under the hammer in the combined capitals, representing a decline of 6.7% compared with the previous seven days.
The preliminary clearance rate dropped to 69.2%, marking the lowest result recorded over the past 24 weeks. This deterioration follows a sustained period of easing that commenced in the first week of September, though the rate had previously remained above the 70% mark.
Melbourne recorded 1,383 auctions, down 4.7% from the week prior, with the clearance rate declining to 69.7% – its weakest performance since the Melbourne Cup Racing Carnival weekend. Current schedules indicate approximately 1,550 properties are listed for auction this week in the Victorian capital, which would represent a significant rebound.
Sydney experienced a 7.9% reduction in auction volumes, with 1,136 properties going under the hammer. The clearance rate contracted to 68.5%, a fall of 2.3 percentage points and the lowest recorded in four weeks.
Brisbane's auction numbers fell to 183, a 14.3% drop, as the clearance rate descended 3.4 percentage points to 68.4%, the weakest in eight weeks. Adelaide's 146 auctions were down 6.4%, yet the clearance rate climbed 4.9 percentage points to 72.6%.
The Australian Capital Territory saw 124 auctions, 10.1% lower than the previous week, though the clearance rate increased 8.5 percentage points to 67.8%. Perth recorded 16 auctions with a 58.3% clearance rate, while no auctions took place in Tasmania.
"The volume of auctions is set to bounce back to around 3,440 this week," said Caitlin Fono (pictured top), analyst at Cotality. "If they all proceed, this week is shaping up to be the biggest week of auctions since the last week of March in 2024.
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