Property auction sales have again plunged around the country, with the latest data showing Sydney’s clearance rate hitting its lowest level in six years.
The new numbers from analyst Cotality suggested a final clearance rate for the week close to 40 per cent in the country’s capital cities, down from the 49.2 per cent preliminary clearance rate.
Auction clearance rates dropped to historically low rates around the country. iStock
“Less than half of homes around the country that went up for auction over the weekend actually sold,” the Australian Financial Review economics editor John Kehoe told Today.
“It’s important to say that’ll actually be revised lower as more failed sales are reported over the coming days as well. So it’ll be down around 40 per cent based on last week’s results as well.”
Other data backs this up, with Domain’s weekly sales figures from Saturday showing significant falls on last year.
On June 27, Domain showed a national preliminary clearance rate for the past week of 51 per cent, down from 67 per cent from this time in 2025.
Sydney dropped to a 49 per cent clearance rate from 67 per cent last year, while Melbourne had a 55 per cent clearance rate compared to 70 per cent in 2025.
Brisbane fell to 40 per cent from 53 per cent, while Adelaide dropped to 49 per cent from 64 per cent.
Canberra recorded the smallest fall, down to 48 per cent from 52 per cent last year.
Median prices in Sydney for both houses and units remained over $1 million apiece.
The national house median price was just over $1.13 million, while the median national unit price was $875,000.
Keogh said the government’s tax changes were the “cherry on top” of what had been an already-cooling market, with some investors wary of splashing more money on the back of multiple interest rate rises.
“I think first buyers and other buyers are also sensing because prices are now falling, they can actually just hang back a little bit and maybe look to purchase later,” he said.
“And at the same time, sellers really haven’t readjusted their price expectations.”
Health Minister Mark Butler claimed real estate agents had said more would-be first-home buyers had been present at the weekend’s auctions than had been seen in a long time.
“You’ve got to remember the war in Iran led to the biggest hit on consumer confidence in 50 years,” he said.
The government says more first home buyers are bidding at auctions. Getty
“After a wave after wave of pressure that we’ve seen from the pandemic through to the war in Ukraine, now to the war in Iran, people are very cautious about their household finances.
“Of course, the budget’s probably had an impact. But look, it’s only a few weeks since then.”
He said the government remained focused on getting younger Australians a firmer foothold in the housing market.