Clearance Rates Continue to Rise in Australia’s Capital Cities as Housing Shortage Drives Price Increases — Sydney Auction Clearance Rate Reaches 79% This Week.

Week’s Key Focus

Australian Capital Cities’ Housing Market Booms as Supply-Demand Imbalance Drives Clearance Rates to New High

The housing market in Australia’s capital cities has been exceptionally strong recently, with a supply-demand imbalance leading to continuous increases in clearance rates, reaching a record high of over 70.7%, the best performance since February 2022.

The severe shortage of available properties in the market has further exacerbated the rebound in clearance rates, contributing to rising property prices. Auction volumes have decreased by 41% compared to the average level, intensifying the strength of the rebound in clearance rates. Despite the Reserve Bank of Australia’s 0.25% interest rate hikes in February, March, and May, property prices in the five major capital cities have already rebounded by 2.5% since hitting the bottom on February 7th.

As the Reserve Bank of Australia prepares to enter the next easing cycle, there are concerns about the rapid rise in property prices. These concerns have further fueled the demand from prospective buyers. However, the limited availability of properties on the market has provided additional impetus for price increases, leading to a sustained rise in clearance rates. The supply-demand imbalance in the housing market has had a significant impact on the overall market.

Carlingford

Down payment starting from $10,000, with the remaining balance paid upon completion.

Auction Results This Week

Sydney: 617 properties were listed for auction, with 421 reported results, 334 properties sold, achieving a clearance rate of 79%. The total value of properties sold at auction amounted to AUD 338,893,750, with a median house price of AUD 1,485,000.
Melbourne: 733 properties were listed for auction, with 582 reported results, 429 properties sold, resulting in a clearance rate of 74%. The total value of properties sold at auction reached AUD 327,057,600, with a median house price of AUD 1,050,000.