Melbourne’s auction market recorded its steepest slowdown in months this week, coinciding with the introduction of Victoria’s new reserve price transparency rules, according to Cotality’s preliminary auction results for the week ending 18 October.
Across the combined capital cities, 1,423 homes went to auction, down 18.6% on the previous week and almost 46% lower than the same week last year.
Auction volumes have been tracking more than 30% below year-ago levels since mid-August, but this week’s fall was by far the largest.
Tim Lawless, Cotality’s research director, said the national drop was being driven by one city in particular.
“This week’s drop is by far the largest, largely driven by Melbourne where auction volumes were down 29% from a week ago and 56% below year-ago levels. The sharp decline coincides with the introduction of reserve price transparency rules in Victoria,” Mr Lawless said.
In Melbourne, 500 homes went to auction, down 28.9% on the previous week and 56.2% lower than the same week last year.
The city’s preliminary clearance rate improved to 56.2%, up from 54.8% the week prior – the highest preliminary result in four weeks.
Nationally, the weighted average clearance rate rose to 51.2%, up from 48.8% last week and also the highest preliminary result in four weeks.
Through the spring season to date, the preliminary clearance rate has averaged 52.0%, slightly below the winter average of 52.3%.
Sydney hosted the most auctions of any capital, with 574 homes taken to market, down 9.2% on the previous week and 46.8% lower than the same week last year.
So far 54.6% have cleared, up from 52.9% last week but still below the spring-to-date average of 55.5%.
Brisbane was the busiest of the smaller capitals, with 164 auctions, down 16.8% weekly and 18.0% lower year-on-year.
Its 31.5% clearance rate was the lowest of any capital, though an improvement on the low-20% range recorded over the previous two weeks.
Adelaide held 119 auctions, down 13.8% on the previous week but 35.2% higher than the same week last year.
The preliminary clearance rate came in at 36.4%, down from 46.8% a week earlier and well below the spring-to-date average of 44.6%.
The ACT recorded 52 auctions, down 20.0% weekly and 49.5% lower year-on-year, but posted the strongest clearance rate of any capital at 65.9% – its best result since mid-April.
Just 13 auctions were held in Perth and one in Tasmania.
Auction activity is set to ease further next week, with around 1,240 homes currently scheduled across the combined capitals.
Melbourne volumes remain particularly low, with only 489 homes scheduled for auction – around 70% fewer than the same week last year – as Victoria’s new reserve price disclosure requirements continue to take effect.