The auction market experienced a further decline last week, with the preliminary clearance rate slipping to 69.6% across the combined capitals, CoreLogic data showed.
This marks the second consecutive week that rates have fallen below 70%, signaling a cooling trend in auction success.
Last month, CoreLogic data showed a market slowdown from high interest rates and stagnant prices, causing some sellers to withdraw their homes. Despite this, REIWA predicts a rebound in auction popularity for 2025, moving away from quick private sales.
A significant drop in auction volumes was observed last week, with only 1,629 properties going under the hammer compared to 2,749 the previous week.
This reduction was largely due to the Labour Day long weekend in Melbourne, which saw auction numbers plummet.
Similarly, Brisbane witnessed a sharp decline in its auction activity, primarily due to the aftermath of ex-Tropical Cyclone Alfred, which left a path of destruction across southeast Queensland over the weekend.
Sydney, which has seen a notable decrease in property prices, led in auction numbers, hosting 871 properties. However, the success rate dipped slightly to 70.7%, the lowest in five weeks, down from 71.4% the previous week.
Melbourne, affected by the holiday weekend, managed 496 auctions with a stable success rate of 70.5%, mirroring closely the previous week’s initial figures but experiencing a significant adjustment in final numbers to 62.8%.
In Brisbane, only 82 auctions were conducted due to rescheduling caused by severe weather, yet the city posted a preliminary clearance rate of 57.6%, an improvement over the previous week’s figures.
Adelaide reported the lowest preliminary success rate since November 2022 at 61.3%, based on 105 auctions.
Meanwhile, the ACT showcased a higher clearance rate of 75% from 62 auctions, marking the highest rate since late June of the previous year. Perth and Tasmania saw minimal activity, with only 12 and one auctions held, respectively.
