Auction insights
Australian property auctions have maintained a consistent performance over the past quarter, with a clearance rate of 66.4 per cent. While this figure surpasses the levels seen in 2022, it falls short of the 71.1 per cent achieved in 2023. Throughout the year, auction activity has remained robust across all markets, characterised by stable bidder participation - a result of the ongoing imbalance between limited listings and sustained buyer interest.
The outlook for the property market appears promising. The upcoming spring selling season, combined with growing optimism about potential multiple interest rate reductions in the next 12 months, is expected to bolster market sentiment. This positive forecast is likely to further energise the auction sector. As a consequence, we may witness continued enhancement in auction clearance rates as we move towards the year’s end. This trend would reflect a property market characterised by increased confidence and heightened activity.
Australian property auctions have maintained a consistent performance over the past quarter, with a clearance rate of 66.4 per cent. While this figure surpasses the levels seen in 2022, it falls short of the 71.1 per cent achieved in 2023. Throughout the year, auction activity has remained robust across all markets, characterised by stable bidder participation - a result of the ongoing imbalance between limited listings and sustained buyer interest.
The outlook for the property market appears promising. The upcoming spring selling season, combined with growing optimism about potential multiple interest rate reductions in the next 12 months, is expected to bolster market sentiment. This positive forecast is likely to further energise the auction sector. As a consequence, we may witness continued enhancement in auction clearance rates as we move towards the year’s end. This trend would reflect a property market characterised by increased confidence and heightened activity.
After a period of stability for much of the year, auction participation has begun to show signs of tapering off. Recent auctions have attracted an average of four registered bidders, with 2.6 actively participating in the bidding process. These figures represent a gradual decline over the past few months, although they remain on par with the previous year’s levels.
The property market continues to grapple with affordability issues, driven by elevated financing costs and persistent price growth across most sectors. However, the landscape may be poised for change. Anticipated interest rate cuts, coupled with the traditional surge in market activity during the spring season, could reinvigorate the auction market for the remainder of 2024.
This potential shift in market dynamics could see auction participation rates rebound to back above four per cent. However, the magnitude of this recovery will likely be contingent on the influx of new property listings. A surge in available properties could provide the necessary stimulus to boost bidder engagement.
It was a strong start to the spring selling season for the Ray White Group, reflecting an increase in market share, price growth and a lift in properties for sale across the country. The number of listing authorities suggests that the large number of properties for sale will continue, although price growth is now moderating in both Sydney and Melbourne.
Settled home sales set records in all states in September for Ray White with Western Australia seeing the biggest increase in volumes (up 54 per cent) compared to last year. Victoria saw significant uplift (19 per cent), but the total was pulled back by more subdued price growth in the state. In dollar terms, Queensland recorded the largest increase compared to last year.
