Sydney Auction Market Hits 10-Year Low for Spring Opening

Sydney property auction market fails to achieve spring renaissance with lacklustre performance.

New Domain data released on Wednesday found that only 48.2 percent of the property being auctioned in Sydney cleared in September, making it the lowest start to spring since the global financial crisis.

The clearance rates for units dropped slightly to 47.9 percent, while houses were at 48.3 percent.

“The lower clearance rate goes along with other indicators we’ve been seeing,” said Domain senior data analyst Nicola Powell. “Prices have been deteriorating, days on market and price discounting are tracking higher and stock levels are rising.”

The performance for the last week of September reached the lowest levels in six years as clearance rates fell to 43.8 percent. Business Insider attributed the underwhelming results to the AFL and NRL Grand Finals as well as the school holidays.

In mid-September, CoreLogic reported that the early spring overall auction numbers in Sydney declined by more than 500 year-on-year.

“So far the spring selling season has seen a lower volume of auctions take place each week relative to the same period last year, demonstrating the reluctance within a softening market,” said the agency in a commentary, “however the weighted average clearance rate has levelled out somewhat; remaining within the low-mid 50 per cent range since May.”