Property auction markets soften in New Zealand and Australia

Residential property auction markets in New Zealand and Australia are showing signs of softening or correction.

In New Zealand, auction activity for the week of September 12-18 reached 298 properties, the highest in several months but still below the 300-property threshold typically associated with the start of the spring season. The sales rate stood at 37%, remaining steady over the last five weeks but lower than the 44% recorded during the same period last year.

In Australia, preliminary auction results indicate a sharp retracement in the housing market. The national clearance rate across combined capital cities fell by 4.6% to 54.0%, despite a 15.6% increase in auction volume. Major cities saw declines, with Melbourne’s clearance rate dropping to 56.3% and Sydney’s to 54.2%. Brisbane reported a successful result rate of only 37.5%.

Australian house prices have declined by 1.3% over the month across five major capital cities, with a quarterly decline of 3.9%. Market sentiment is being impacted by worsening interest rate expectations ahead of the Reserve Bank’s upcoming monetary policy meeting.