Australia’s auction market has gathered strength over recent months.
Last week’s national final auction clearance rate of 70.0% was the strongest result since the week ending 11th February 2024 (70.3%).
This weekend’s preliminary auction clearance results showed further strength, with Cotality reporting a national preliminary clearance rate of 76.3%, a full percentage point higher than a week ago (75.3%, revised down to 70.0% once finalised, which was the highest final clearance rate since Feb 2024).
Source: Cotality
Sydney’s auction market is especially strong, recording a final auction clearance rate of 71.6% last week and a preliminary rate of 80.3% this weekend, breaking the 80% mark for the first time since April 2024.
The surge in auction clearance rates has helped to push home values higher.
Cotality’s daily dwelling values index, which captures value changes across the five major capital cities, reported a 0.8% increase in August:
Quarterly dwelling value growth also strengthened to 2.1%:
The following chart, which plots value changes on a rolling 28-day basis, shows that dwelling value growth across the five major capital cities is running at its fastest pace since June 2024:
The prospect of further interest rate cuts from the Reserve Bank of Australia and the Albanese government’s 5% deposit scheme for first home buyers, which comes into effect on 1 October, promises to provide more stimulus to the market.
Regretfully, Australian housing, which already exceeds $1 million on average, is set to become even pricier.
