Arabic version: سوق العقارات الأسترالي يواجه تصحيحًا مع تراجع معدلات المزادات
According to ABC News,
The early signs of an Australian housing market correction are now clearly visible. Demand was dented when the Reserve Bank began increasing interest rates earlier this year. Three consecutive interest rate hikes have taken away borrowing capacity to the tune of tens of thousands of dollars, further dampening market sentiment. Additionally, leaks regarding potential changes to negative gearing and capital gains tax have exacerbated the situation. Despite a slight increase in the preliminary auction clearance rate to 58.2 percent last week, this figure remains below the critical 60 percent benchmark for six of the last eight weeks.
Auction clearance rates across major cities have varied, with Melbourne’s preliminary rate at 60.2 percent and Sydney recovering to 56.9 percent after a low of 49.2 percent. In Brisbane, the preliminary clearance rate dropped to 45.7 percent, marking the lowest outcome since April 2023. Meanwhile, Adelaide reported the highest clearance rate at 72 percent, despite an 8.8 percent decline in auction volumes.
The number of market participants is also declining, according to real estate firm Ray White. Average attendance at open homes is now 2.1, significantly lower than 3.5 attendees at the same time last year. This drop indicates that buyer foot traffic has not rebounded following recent declines. Experts suggest that potential buyers are hesitant due to uncertainty about future mortgage repayments, particularly if interest rates continue to rise.
As more properties are listed for auction, some sellers may be attempting to offload homes before market conditions worsen. With just more than 2,750 properties currently scheduled nationally for auction, there are concerns that this influx could accelerate the ongoing property market downturn. Analysts from Cotality and SQM Research predict significant price declines in key markets like Sydney and Melbourne, projecting drops of 9 percent and 7 percent, respectively, for 2026.
