{"id":505067,"date":"2026-06-22T07:29:18","date_gmt":"2026-06-22T07:29:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/505067\/"},"modified":"2026-06-22T07:29:18","modified_gmt":"2026-06-22T07:29:18","slug":"property-news-auction-clearance-rate-tumbles","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/505067\/","title":{"rendered":"Property news: Auction clearance rate tumbles"},"content":{"rendered":"

Home buyers remain spooked by planned tax changes<\/a> and the impact of three interest rate rises<\/a>, with the auction clearance tumbling below 50 per cent for the first time since the COVID-19 pandemic.<\/p>\n

Figures from property research firm Cotality shows the preliminary clearance rate in the capital cities last week slumped to 47 per cent.<\/p>\n

\"\"<\/p>\n

Auction rates across capital cities are tumbling towards their lowest levels since the pandemic, new figures show.\u00a0Peter Rae<\/p>\n

It was the first time since April 2020 – the early stages of the Covid health emergency <\/a>– that it had fallen below 50 per cent.\u00a0<\/p>\n

The gloomy figure is well down on the 60 per cent for 10 of the past 12 weeks.<\/p>\n

It could prove to be even worse when the final results are released on Wednesday.<\/p>\n

Sydney – the country\u2019s largest property market – has born the brunt of the downturn.<\/p>\n

Are you holding off selling your property due to the downturn? We want to hear your story. Email reporter Richard Wood at riwood@nine.com.au<\/a><\/p>\n

Cotality data shows Sydney hosted 645 auctions last week, a 17.5 per cent drop on the number of auctions held the previous week. From those, 47 per cent have reported a positive result so far, the lowest preliminary clearance rate since the week ending April 19, 2020.<\/p>\n

Other capital cities reported less steep declines. Melbourne held 910 auctions last week, 6.7 per cent fewer than a week ago, while Brisbane held 142, level with the number of the previous week.<\/p>\n

Property buyers have been making a painful adjustment to changes unveiled in the May federal budget to regulations concerning negative gearing and capital gains tax.<\/p>\n

From July 2027, a minimum 30 per cent tax on capital gains will be brought in, while negative gearing on residential property will be limited to new builds.<\/p>\n

Earlier this year, property buyers were left reeling by three consecutive interest rate rises. Last week, the Reserve Bank kept kept them at 4.35 per cent.<\/p>\n

Cotality is forecasting number of auctions to drop further over the coming weeks \u2013 partly a seasonal trend, but also likely a factor of weaker selling conditions. <\/p>\n

This week there are 1800 auctions on the books, reducing to less than 1500 next week.<\/p>\n

\u2018Adjustment\u2019 looming for Aussie property, experts say<\/p>\n

Economic experts now predict that an \u201cadjustment\u201d is coming for the Australian property market, which has seen stratospheric growth following the COVID-19 pandemic.<\/p>\n

Deputy Chief Economist at AMP Diana Mousina says that they forecast house prices to drop by around 5 per cent.<\/p>\n

\u201cWe expect property prices to fall by around 5 per cent overall, which is sort of around the middle of the usual range of price falls (see the chart below) and the 5-year average will look low relative to history,\u201d Mousina wrote.<\/p>\n

\u201cHowever, we don\u2019t expect continuous falls in prices. Eventually, affordability will look better and drive more demand into the market.\u201d<\/p>\n

Mousina argues that such an adjustment isn\u2019t a harbinger of doom, but rather a \u201cneeded\u201d correction after a period of huge growth.<\/p>\n

\u201cThe expected slowing in home prices is not enough in itself to generate a serious economic downturn in Australia,\u201d she said. <\/p>\n

\u201cLower wealth growth will limit household spending but this is also helpful to get inflation to be a bit lower. It could make the RBA\u2019s job a little easier.<\/p>\n

\u201cGiven the 50+% growth in home prices that have occurred in Australia in less than 5 years, a short-term adjustment with lower home prices is needed to rebalance affordability.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Home buyers remain spooked by planned tax changes and the impact of three interest rate rises, with the…\n","protected":false},"author":2,"featured_media":505068,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-505067","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/505067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=505067"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/505067\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/505068"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=505067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=505067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=505067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}