The national auction clearance rate has maintained a robust performance, exceeding 70 per cent for the eighth consecutive week. As buyers prepare for a likely interest rate cut later this month, the combined capitals’ preliminary clearance rate stood at 72.3 per cent, according to data from Cotality. This figure represents a slight decline from the previous week’s rate of 74.7 per cent.
In Sydney, the preliminary clearance rate reached 74.9 per cent, marking the third-highest for the year to date. Meanwhile, Melbourne recorded a success rate of 71.8 per cent. Despite a typical winter slowdown, the current auction environment indicates a resilient market.
Market Trends and Buyer Sentiment
While listing volumes have decreased in many regions, Louis Christopher, founder of SQM Research, anticipates an increase as the spring selling season approaches. He noted, “The market is clearly stronger than where we were this time last year. We’ve noticed a further pick-up in sentiment in Sydney.” Christopher highlighted that the upper end of the market is currently outperforming the lower segment, particularly in Sydney’s eastern suburbs.
The anticipated interest rate cut and recent moderate inflation figures—a 2.1 per cent drop in the headline consumer price index (CPI), the lowest in four years—could encourage more first-time buyers to enter the market. “We believe that we’ll be seeing more first-time buyers enter the market in the second half of the year, particularly if we get another rate cut,” Christopher added. Many renters are eager to transition to homeownership when the opportunity arises.
Notable Sales and Regional Performance
The Sydney inner west has showcased some impressive auction results. A notable example is a two-bedroom freestanding home at 9 Petersham Street, which initially had a price guide of $1.5 million but sold for $1,978,000 after just 14 days on the market. The auction attracted over 100 inspections and 17 registered bidders, with five actively competing.
In Brisbane, the preliminary clearance rate remained strong at 71.1 per cent for the second consecutive week. However, the Australian Capital Territory (ACT) saw a decline to 65.8 per cent, down from 73.7 per cent a week prior. Similarly, Adelaide’s preliminary clearance rate fell to 65.1 per cent, the lowest since early June.
As the auction landscape remains steady, approximately 1,570 homes are expected to be auctioned this week, with that number increasing to around 1,900 in the following week as the spring selling season gains momentum.
