Clearance rates slip as rates continue to rise

Across the country, there were 11 per cent more auctions than last week, with 1,467 homes going under the hammer. So far, 1,125 results have been collected for a preliminary clearance rate of 65.2 per cent, down 2.2 per cent. Brisbane was the only capital city to report more successful results than last week.

CoreLogic reported an increase in the withdrawal rate, up to 13.4 per cent from 9.3 per cent, with the research firm positing the figure signals diminishing vendor confidence in light of the Reserve Bank of Australia’s (RBA) February cash rate increase. It is expected that the rate rise will incite a higher portion of auctions passed in at auction.

Sydney remained the busiest capital city market with 606 auctions throughout the week, up from last week’s 424, but down on the 886 seen this time last year. For the first time this year, the harbour city’s preliminary clearance dipped below 70 per cent, with 67.4 per cent of its auctions a success. This clearance rate dip coincided with a withdrawal rate jump from 12.5 per cent to 17.9 per cent. 

The Sutherland area was the city’s strongest performing Sydney sub-region, with 77.3 per cent of its 24 auctions returning a positive result, just ahead of the City and Inner South’s 77.2 per cent. Meanwhile, Baulkham Hills and Hawkesbury was the city’s poorest performing region, with a preliminary clearance rate of 53.9 per cent reported from 19 auctions.

Melbourne hosted 543 auctions this week as a result of a 31.5 per cent in activity increase. The Victorian capital’s preliminary clearance rate’s downward trajectory continued with a 3.3 per cent rate decrease to 63.8 per cent this week.

The city’s South East’s 80.8 per cent preliminary clearance rate from 63 auctions marks it as Melbourne’s strongest performer, while on the opposite end of the spectrum, the Mornington Peninsula was the weakest performer as 40 per cent of its 14 auctions returned a successful result.

Volume across the smaller capitals fell 34.4 per cent. Brisbane and Canberra both hosted 102 auctions as a result of a 49 per cent and 27.1 per cent decrease, respectively, with Adelaide’s 99 total auctions the consequence of a 23.8 per cent drop. 

Brisbane recorded a slight increase in preliminary clearance rates, up 11.5 per cent to 63.4 per cent. In Adelaide, 71.2 per cent of all auctions returned a successful result, slightly higher than Canberra’s return of 60 per cent. 

In Perth, four of the 11 results collected so far have returned a positive result, while the two auctions held in Tasmania this week were unsuccessful.

[Related: 2–3 per cent CPI target bank not until June 2025: RBA]