Clearance rates hit six-year low as more than half of Australian homes up for auction fail to sell
Summary
Less than half of the homes put up for auction in Australia's main cities sold recently, marking the lowest rate in six years. This decline in sales comes as interest rates remain high and the government debates changes to property tax rules.Key Facts
- The overall auction clearance rate in Australian capital cities was 47.4% for the week ending June 21.
- Sydney had a clearance rate of 47.4%, Melbourne 50.6%, Brisbane 33.3%, Perth and Adelaide 40%, and Canberra 47.1%.
- These clearance rates are the lowest since April 2020, during the start of the COVID-19 pandemic.
- Nearly 24% of scheduled auctions were cancelled, and about 48% sold before auction.
- The Reserve Bank of Australia kept interest rates at 4.35%, affecting mortgage repayments.
- The government plans to change capital gains tax discounts and negative gearing rules, which are currently being debated in parliament.
- Some politicians criticize the proposed changes as unfair, while others say they aim to help first-time homebuyers.
- A senator remarked that the housing market is struggling because many people cannot afford to buy homes.
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