Sydney and Melbourne auction market hits fresh low amid slowdown
- 12 hours ago
- 2 min read
Australia’s housing market is showing further signs of slowing, with auction clearance rates falling to their lowest levels since the early stages of the COVID-19 pandemic.
New data shows Melbourne recorded a preliminary auction clearance rate of just 52.3 per cent over the weekend, its weakest result in five years. Sydney improved slightly to 52.9 per cent but remained well below levels seen a year ago.
Across all capital cities, the combined clearance rate dropped to 51.1 per cent, highlighting softer buyer demand and growing pressure on sellers.
Property experts say rising interest rates, affordability challenges and an increase in homes for sale are shifting the market in favour of buyers. With more listings expected in the coming months, purchasers are gaining greater choice and negotiating power.
Home values in Sydney and Melbourne have already fallen by more than 2 per cent over the past three months, while properties are taking longer to sell. Listings in both cities have also increased compared to last year.
Analysts warn that further price declines are possible, particularly if interest rates rise again. Several major banks expect rates to remain elevated for some time, while others are forecasting additional increases later this year.
Recent federal budget measures targeting property investors, including proposed changes to negative gearing and capital gains tax concessions, are also expected to reduce investor activity and add to the market slowdown.
Despite the weaker conditions, economists do not expect a major housing crash. However, they believe prices could continue to soften as higher borrowing costs, inflation pressures and cautious consumer sentiment weigh on demand.
For buyers, the cooling market may create new opportunities. For sellers, experts say realistic pricing and expectations will be more important than ever.
Source : News.com
More updates to come on AusNewsLanka.
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