Property market has another disappointing auction weekend

National auction clearance rates have continued to drop, despite the official cash rate falling to its lowest point in three years and the likely prospect of another cut at next week’s Reserve Bank meeting.

National auction clearance rates have continued to drop, despite the official cash rate falling to its lowest point in three years and the likely prospect of another cut at next week’s Reserve Bank meeting.

Sydney has continued a second week of low clearance rates, falling one percentage point to 48%. A total of 253 properties went under the hammer, with 139 selling at a total of $82 million.

Melbourne rates also fell one percentage point to 53% – but are significantly down from the 78% recorded at the same time last year. The city saw 351 properties sold at a total of $197.4 million.

Real Estate Institute of Victoria chief executive Enzo Raimondo says buyers are wary to enter the market, but next week may see a surge in interest.

“The impact of the problems in the wider economy was apparent for the third week in a row as the clearance rate remained in the mid-50s after spending the first third of the year in the mid-60s,” he says.

“Next weekend is shaping as one of the biggest weekends in the year, with nearly 1000 auctions scheduled.”

Up north, Brisbane suffered a fall to 30% from last week’s 34%, with just 10 properties selling for a total of $6.3 million. Adelaide was the only city to escape a drop in rates, but remained steady at last week’s rate of 42%.