Auction clearance rates moderate as interest rates impact market

Auction clearance rates across Australia moderated in the September quarter, with high interest rates affecting borrowing capacities and buyer demand in some markets, according to the latest Apollo Auctions Market Update.

Apollo Auctions Director Justin Nickerson said that while market conditions have softened, inflation is trending downwards with interest rate cuts expected in the near future.

“Many commentators are forecasting interest rates cuts to begin either at the end of this year or the start of next, so, the smartest buyers are making their moves now,” Mr Nickerson said.

The national auction clearance rate decreased to about 57 per cent this quarter, down from 64 per cent in the June quarter and 66.1 per cent a year ago.

Southeast Queensland and Perth remained the strongest markets, with auction clearances above 60 per cent over the past three months.

Logan City was the standout performer, recording an auction clearance rate of 66.1 per cent and a highest sale under the hammer of $1.21 million.

Mr Nickerson noted that Brisbane was not far behind with a clearance rate of 56.8 per cent and a highest auction sale price of $4.6 million.

The highest sale price achieved by Apollo Auctions over the quarter was $11.96 million on the Gold Coast.

Across the nation, there was an average of nearly 60 per cent active bidders at auctions, with the Sunshine Coast recording the highest average at 64 per cent.

According to the latest CoreLogic Home Value Index, the median dwelling value in Brisbane and the Gold Coast increased 14.5 per cent over the year to September, while Perth remained the capital city with the highest annual growth at 24.1 per cent.

Apollo auctioneer Ross Cannell reported strong performance in the Brisbane auction market during the third quarter, with rising clearance rates and competitive bidding across key suburbs.

In Logan City, auctioneer Jack Barrett noted increased competition at property auctions due to strong demand and persistent lack of supply.

Sunshine Coast auctioneer Chantel Dielwart said investors and homebuyers were adjusting to broader economic conditions but still willing to make significant bids for the right opportunities.

On the Gold Coast, auctioneer Rob Doorey reported growth in clearance rates, attendance, and active bidders as September arrived, following a temporary slowdown through winter.

In Melbourne, market conditions remained subdued, according to auctioneer Andy Reid, although solid auction results were still occurring.

Perth auctioneer Richard Kerr noted gradual improvement in the market as spring arrived, following a period of record low stock levels throughout winter.