The preliminary auction clearance rate in Australia has maintained a robust performance, staying above 70 percent for the eighth consecutive week. As buyers anticipate a likely reduction in interest rates later this month, the combined capitals’ preliminary clearance rate reached **72.3 percent**, according to data from Cotality. Although this figure reflects a slight decline from **74.7 percent** the previous week, it indicates continued strength in the property market.
In Sydney, **74.9 percent** of auctions were successful, marking the third-highest preliminary clearance rate recorded so far this year. Meanwhile, Melbourne’s clearance rate stood at **71.8 percent**. Despite a typical seasonal slowdown, the auction market appears resilient, with many analysts optimistic about future trends.
Louis Christopher, an analyst and founder of SQM Research, noted that while listing volumes are generally lower across most markets, they are expected to rise as the spring selling season approaches. “The market is clearly stronger than where we were this time last year. We’ve noticed a further pick-up in sentiment in Sydney,” he stated on Sunday.
Christopher highlighted the growing strength in the upper end of the market, particularly in areas like Sydney’s eastern suburbs. This contrasts with lower-end markets, where first-time buyers are beginning to show interest, driven by decreasing borrowing costs.
Recent inflation figures, which showed the headline consumer price index (CPI) dropping to a four-year low of **2.1 percent**, have created a favorable environment for possible monetary policy adjustments. The Reserve Bank’s board is scheduled to meet on **August 11-12, 2023**, to discuss potential rate changes. Christopher believes that if another rate cut occurs, it could encourage more first-time buyers to enter the market. “A number of renters want to turn themselves into first-time buyers when they get the opportunity,” he added.
Some notable auction results emerged from Sydney’s inner west. A two-bedroom, freestanding home at **9 Petersham Street** sold for **$1,978,000**, significantly exceeding its initial price guide of **$1.5 million**, which was later revised to **$1.6 million**. The property attracted over **100 inspections** and 17 registered bidders, with five competing at the auction. Remarkably, it sold just 14 days after being listed, following a swift decision by the selling agents from Cobden Hayson.
In smaller markets, Brisbane’s preliminary clearance rate held steady at **71.1 percent**, marking its second consecutive week above 70 percent. The Australian Capital Territory (ACT) experienced a decline, with its success rate falling to **65.8 percent** from **73.7 percent** the previous week. Similarly, Adelaide reported a preliminary clearance rate of **65.1 percent**, the lowest since early June.
Looking ahead, auction numbers are expected to remain stable, with around **1,570 homes** scheduled for auction in the coming week. This figure is projected to rise to approximately **1,900** the following week as the spring selling season gains momentum. The continuing interest from buyers, particularly those poised to enter the market, suggests a vibrant auction environment in the months ahead.
