Australian property auction slump deepens as clearance rates fall

Australian real‑estate agents report an acute downturn in property auctions. A senior Sydney auctioneer said his latest auction saw zero registrations, describing it as the worst day of his 30‑year career. National auction clearance rates have hovered around 54 %, the lowest levels since the COVID‑19 pandemic, with Sydney at about 56 % and Melbourne near 55 %. Brisbane’s clearance rate slipped to roughly 30 %, marking the second‑lowest early result this year.

The slump follows recent changes to negative‑gearing and capital‑gains tax rules, three consecutive interest‑rate hikes, and persistent inflation. Buyer demand has collapsed while listings for sale have risen, leading many sellers to withdraw properties or sell before auction. Withdrawal rates remain elevated, hovering in the high teens. Analysts warn that continued weakness could pressure home prices further across all major Australian markets.