Auction clearance rates hit new low amid King’s Birthday holiday

The auction market experienced a significant downturn, marking the lowest clearance rate of the year during the King’s Birthday long weekend, which affected six of the eight states and territories. According to CoreLogic’s latest Property Market Indicator Summary, the week ending 9 June 2024 saw a stark reduction in auction volumes with only 1,281 properties auctioned, compared to 2,380 the previous week.

This decrease in activity did not translate into a higher success rate; instead, the preliminary clearance rate fell to 67.3 percent, the lowest so far this year. It also marked the first occasion since late last year that the preliminary clearance rate dipped below 70 percent.

In Melbourne, 468 homes were auctioned, resulting in a preliminary clearance rate of 63.2 percent, a notable decrease from 69.4 percent the week before. Sydney saw 508 homes go under the hammer, achieving a preliminary clearance rate of 70.1 percent, slightly down from 71.4 percent and marking the city’s lowest preliminary clearance rate of 2024.

Meanwhile, Brisbane led the smaller capital cities in auction volume, with 125 properties auctioned and a preliminary clearance rate of 67 percent, an improvement from the previous week’s 64 percent. Adelaide maintained its strong performance with a preliminary clearance rate of 85 percent from 97 auctions, only slightly below the 87.2 percent recorded the week prior.

Canberra and Perth experienced mixed results, with Canberra’s 42 auctions achieving a preliminary rate of 52.4 percent, a significant decline from 81.3 percent. Perth reported results for eight out of 15 auctions, with five being successful. Tasmania held just one auction, which did not result in a sale.

Looking ahead, CoreLogic anticipates a rebound in auction volumes for the week ending 16 June, with approximately 2,300 homes expected to be auctioned.