forecast to decline by up to 10 per cent<\/a> due to the tax changes and rate hikes, according to Morgan Stanley\u2019s chief economist Chris Read.<\/p>\n\u201cThe previous model of high leverage, cash flow losses, and large expected capital gains is meaningfully challenged,\u201d Mr Read said in a statement.<\/p>\n
Speaking on the clearance rate slump, Cotality economist Annabelle Mezieres revealed that 23.6 per cent of scheduled auctions were withdrawn while 48 per cent of properties sold before going under the hammer.<\/p>\n
\u201cThis could mean that vendors are unwilling to test the market under auction conditions,\u201d Ms Mezieres said in a statement.<\/p>\n
REA Group senior economic analyst Megan Lieu said the decline in clearance rates reflected the “growing mismatch” between buyer and seller expectations.<\/p>\n
“While buyers are recalibrating what they’re willing to pay, sellers may remain anchored to pricing set under stronger market conditions,” Ms Lieu told SkyNews.com.au.<\/p>\n
“This suggests that the market is transitioning to a period of weaker momentum.\u201d<\/p>\n
The downturn follows the cash rate lifting 0.75 per cent since the start of 2026 while Labor plans to roll back negative gearing and slash the 50 per cent capital gains tax discount.<\/p>\n
About 166 auctions were withdrawn in Sydney last week while only 225 out of 645 total auctions were cleared.<\/p>\n
This marked a 17.5 per cent decline in clearance rates in the Harbour City compared to the previous week.<\/p>\n
Melbourne recorded 910 auctions with a 50.6 per cent preliminary clearance rate, down about 6.7 per cent from last week.<\/p>\n
Meanwhile, about one third of the 142 auctions held in Brisbane cleared while about 40 per cent of the 91 homes auctioned in Adelaide had early success.<\/p>\n
The nation\u2019s capital hosted 65 auctions and reported a 47.1 per cent preliminary result while Perth had just a 40 per cent clearance rate across its 16 auctions.<\/p>\n","protected":false},"excerpt":{"rendered":"One surprising generation could be in \u201cdire straits\u201d as house prices are set to fall and preliminary auction…\n","protected":false},"author":2,"featured_media":752319,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,360929,63,99,44704,360928,32364,164,10930,10928,4686],"class_list":["post-752318","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-auction-rates","tag-australia","tag-business","tag-cgt","tag-clearance-rates","tag-cotality","tag-economy","tag-house-prices","tag-negative-gearing","tag-property"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/752318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=752318"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/752318\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/752319"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=752318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=752318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=752318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}