Arabic version: سيدني وملبورن تواجهان أدنى معدلات تصفية مزادات العقارات في التاريخ
New data reveals that Sydney and Melbourne have recorded their worst property auction clearance results in years, with fewer than half of the homes auctioned finding buyers in the past week. According to ABC News, Sydney’s clearance rate dropped to 47.3 percent, the lowest since April 2020, while Melbourne’s rate fell to 50.2 percent, marking its weakest performance since the COVID-19 lockdowns in September 2021.
The preliminary national clearance rate from property research firm Cotality stood at 49.2 percent, with expectations that it may decline further, potentially reaching around 40 percent once all results are finalized. A clearance rate above 60 percent is typically viewed as indicative of a balanced market.
Brisbane experienced the steepest decline, with a clearance rate of just 39.3 percent, despite a slight improvement compared to the previous week. In contrast, Adelaide’s market showed resilience, with auction volumes increasing by nearly 24 percent and a clearance rate of 68.7 percent, the best in five weeks.
Market analysts attribute the weak auction results to multiple factors, including decreased investor demand due to recent budget changes. AMP deputy chief economist Diana Mousina noted that a shift in negative gearing policies and an overhaul of the capital gains tax are likely to further cool demand for established properties.
Despite the current downturn, Mousina indicated that home prices may decline by about 5 percent over the next year, while the ongoing housing deficit in capital cities could keep prices elevated. The upcoming weekend is expected to see around 1,800 auctions across the country, potentially providing further insights into the market’s direction.
