australian auction market may be returning to a balanced state according to november 2023 figures
Image: Canva, edited with AI.
  • Combined capital clearance rates were 59.8% for November 2023.
  • Recent clearance rate performance may indicate a more balanced market.
  • Auction volumes rose, in line with expectations for the period.

Australia’s auction market has delivered new highs across the capitals and regions, according to the November auction report from Domain.

“A steady rise in auction listings in recent months, consistent with the spring selling season, has weighed on the strong performance of clearance rates seen in the middle of 2023,” said Domain chief of research and economics, Dr Nicola Powell.

“Increased choice has eased buyer competition and dissipated the sense of urgency evident earlier in the year.”

How did Australia’s auction market perform in November 2023?

The combined capitals recorded a 19 month high for auction volumes, while the combined regionals recorded a 12 month high.

Capital cities broadly followed national auction volume trends for the month, according to the report, barring Melbourne.

Notable performances were recorded in Sydney and Canberra, where volumes hit 19 month highs, while Adelaide recorded a 16 month high.

 

Location

Clearance rate Monthly change Annual change  

Auction volume

 

Sold at auction

 

Passed in

 

Sold prior

 

Withdrawn

Combined Capitals

 

59.8%

 

-1.6ppt

 

5.2ppt

 

9,984

 

5,404

 

2,222

 

23.2%

 

15.7%

Combined Regionals  

43.1%

 

1.0ppt

 

1.9ppt

 

1,467

 

538

 

453

 

19.2%

 

20.6%

Sydney

63.7% -0.6ppt 6.5ppt 4,277 2,459 635 31.8% 19.8%
Melbourne 58.0% -3.8ppt 1.9ppt 3,940 2,123 1,086 18.0%

12.4%

Brisbane

41.3% -6.9ppt 4.1ppt 576 192 197 12.3% 16.3%
Adelaide 66.3% 3.9ppt 9.9ppt 645 398 150 12.8%

8.7%

Canberra

53.4% 4.1ppt 2.3ppt 463 217 132 16.7% 14.0%
Perth 72 8 19

Hobart

3 2
Darwin 8 7 1

Geographies are ABS GCCSA. Auction reporting rates are 90.3% in Sydney, 93.0% in Melbourne, 80.7% in Brisbane, 93.0% in Adelaide and 87.7% in Canberra.

Source: Domain.

Combined capital clearance rates across November remained higher than the second half of 2022, while declining for the fifth consecutive month.

Combined regional results, however, were up over the month and is high compared to its historical performance.

“The lift in auction listings shows improved seller confidence as the recovery in Australia’s housing market — prices either hitting or close to new records — motivates sellers to list,” said Dr Powell.

“However, the recent performance of clearance rates seems to indicate a more balanced market, providing buyers with greater bargaining leverage.”

Dr Nicola Powell, Domain

“As we move into 2024, the autumn selling season will be the next big test of the auction market given the normal seasonal bounce that occurs early in the year,” added Powell.

How have Australian auction prices changed over November?

Median auction prices generally rose across the east coast, with the Sydney median house auction price coming in at $1,695,314. This represents 1.2% monthly growth and 3.1% annual growth. Sydney’s median unit auction price was $906,258, representing 1.3% monthly growth.

Melbourne had a flat month, bu the median represented 1.2% annual growth for house prices. Units, however, recorded 0.1% growth.

Brisbane’s median house auction price grew 3.7%, while units dipped 7.5%.

 

 

 

Location

Houses Units
 

Median

Monthly change Annual change  

Median

Monthly change

Annual change

Sydney

$1,695,314 1.2% 3.1% $906,258 1.3%
Melbourne $1,068,203 0.0% 1.2% $654,088 0.1%

Brisbane

$1,287,152 3.7% $657,000 -7.5%
Adelaide $918,255 1.7%

Canberra

$1,106,325 -0.6%

Perth, Darwin and Hobart are removed due to low auction volumes.

Source: Domain.

City by city breakdown

The month of November saw Sydney break its >65% streak, the longest stretch above the mark since November 2021. While 63.7% is the lowest clearance rate for this year, it remains above most of the figures from 2022. It is also the third consecutive month of falls, the first time such a stretch has been seen since July 2022.

Melbourne saw clearance rates fall for the fifth month in a row, and is the first such stretch since July 2022. The Victorian capital is now currently at its lowest clearance rate for the year, but remains high relative to the second half of 2022.

The Queensland capital of Brisbane recorded the largest monthly decline in clearance rates of the capitals in November. It is the third consecutive month of falls.

Both Adelaide and Canberra recorded clearance rate growth, with the nation’s capital recording the largest uplift (4.1ppt month on month).



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