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Australian Auction Clearance Rates Slide Below 50% for Third Week

Persistent low results with large revisions to early counts point to weakening buyer demand driven by higher borrowing costs, falling prices, changes to investor tax rules

Overview

  • Cotality’s preliminary national clearance rate rose slightly to 49.8 percent this week, marking the third consecutive week under 50 percent and signalling weak auction demand.
  • An earlier preliminary figure was revised down to a 45 percent final clearance rate after all results were tallied, highlighting how preliminary counts can overstate sales.
  • Analysts blame weaker demand on higher interest rates, recent falls in property values and the government’s tightening of investor tax settings, which has reduced investor participation.
  • Auction listings have fallen sharply, with reporting noting a roughly 17 percent drop from the prior week and about 19 percent fewer listings than a year ago, driven by the seasonal winter slowdown.
  • Price pressure is strongest in Sydney and Melbourne where declines have accelerated, while buyers face more negotiating power and some see a short window to enter the market as conditions settle.