Australia’s auction market has slipped to its weakest point since the early days of COVID‑19, with clearance rates dropping below 50% over the past week. The weighted national average now sits at 47%, marking the first time since April 2020 that the figure has fallen under the halfway mark.
And the final numbers may look even worse once all results are collected, according to Tim Lawless, research director at property data firm Cotality. The downturn comes just days after the Reserve Bank held interest rates at 4.35%, following three hikes earlier this year. The decision reflected recent signs of a slowing economy and rising unemployment.
Lawless said a “lack of vendor confidence” is keeping sellers cautious and weighing on auction performance. “We should expect a further loss of momentum in the pace of growth in housing values,” he said, warning that sellers must now be “quite realistic” about what buyers are willing to pay.
“It is very much a buyer’s market now in most markets,” he added, noting that urgency has evaporated and buyers are negotiating harder.
Housing Values Losing Steam Across Major Cities
Lawless said the slowdown is broad‑based:
Sydney and Melbourne values have been falling since late last year.
Adelaide values rose just 0.3% over the past four weeks, the weakest result in more than a year.
Brisbane is up only 0.5% over the same period.
Perth, still the nation’s strongest market, rose 0.9%, but that is less than one‑third of its growth rate at the end of last year.
Policy Changes Looming Over the Market
Adding to uncertainty, major tax reforms are set to reshape property investment:
A minimum 30% capital gains tax will apply from July 2027.
Negative gearing will be restricted to new builds only, reducing incentives for investors buying established homes.
With economic momentum fading, interest rates high and policy changes on the horizon, Australia’s housing market is entering a period of adjustment and the auction market is showing the first clear signs of strain.
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