Australia's property market is experiencing a slowdown as evidenced by a three-month low clearance rate at auctions. In the past week, only 48.2% of auctions were successful, down significantly from the previous week and year-over-year figures. This decline coincides with recent interest rate hikes by the Reserve Bank and policy changes affecting negative gearing and capital gains tax. Additionally, there has been a surge in unsold homes, up 21.6% annually to 276,000 across the country, indicating longer selling periods for properties, especially in Sydney and Melbourne.
Written locally by qwen2.5:14b on 2026-10-05,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
The Australian property market experienced a significant slowdown at the start of spring, with the auction clearance rate dropping to its lowest point in three months. In the week ending September 10th, only 48.2% of auctions across capital cities resulted in sales, marking a sharp decline from previous weeks and a year-over-year drop of nearly 50%, according to Cotality's data showing just 1,223 auctions were held nationwide. Tim Lawless, Cotality’s research director, attributes the weak results to long weekends impacting some states and the Reserve Bank of Australia (RBA) increasing interest rates for a fourth time this year. Economists predict that capital city property prices could potentially fall by 10-15% from their peak values as a result of these factors.
Written for “Australian Property Market Slows” on 2026-10-05,
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It comes off the back of two long weekends in major capital cities and the RBA lifting the cash rate again last week.
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RBA → come → rate
Some economists predict capital city property prices could fall 10-15 per cent from peak to trough.
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prices → predict → trough
Australia's auction clearance rate has slumped to a three-month low, while new data shows the number of unsold homes has surged by more than 20 per cent in the past year.
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number → slump → year
Less than half the auctions that occurred across the country last week resulted in a successful sale.
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that → occur → sale
The preliminary clearance rate in the past week fell to 48.2 per cent, its lowest since late June (47.4 per cent) and the second-lowest preliminary reading for the year so far.
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rate → fall → year
In the past week, 1,223 auctions were held in the nation's capital cities.
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auctions → hold → cities
It was also a significant 47.5 per cent drop from a year ago, according to new data from property research firm Cotality.
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It → accord → Cotality
Sharp fall in number of auctions held
Tim Lawless, Cotality's research director, said the weak result came off the back of long weekends in some states and the Reserve Bank's decision to lift interest rates for a fourth time this year.
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result → hold → time
It also comes after changes in this year's federal budget that sent shock waves through the property sector, including heavily restricted negative gearing, and in many cases higher capital gains tax for sellers.
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that → come → sellers
Sydney and Melbourne "have been a drag on the national result", Mr Lawless said.
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Lawless → say → result
In Sydney, 304 auctions were held in the past week, down 61 per cent to the week before.
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auctions → hold → week
It was also a 38.5 per cent drop compared to a year ago.
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It → compare → ?
That was a 136 per cent jump compared to the previous week when the city was having the AFL grand final long weekend.
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city → compare → weekend
But in the past 12 months, the number of auctions held in Melbourne has dropped 45.6 per cent, the largest decline of any capital city.
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number → hold → city
Property taking up to six months to sell
Another real estate analysis firm, SQM Research, also released new data, showing some homes were sitting unsold on the market for as long as six months.
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homes → take → months
Homes that sat unsold for more than 180 days were clogging the market, with 10.5 per cent more older listings compared to a year ago.
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that → sit → listings
Spring's traditional selling boom has ground to a halt so far this season, with the number of unsold homes across the country totalling 276,000 — a 21.6 per cent annual increase.
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number → grind → 276,000
"The bulk of the increase is property that has been on the market for one to six months and hasn't sold," SQM research director Louis Christopher said.
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Christopher → sell → months
"In Sydney, fewer vendors are listing than a year ago, yet total stock is up almost a fifth.
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stock → list → Sydney
Forced sales on the rise
Brisbane and Adelaide have had the largest increase in the number of properties available for sale, up 43.5 and 39.5 per cent respectively, according to SQM's data.
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Brisbane → force → data
Melbourne, meanwhile, had 30.3 per cent more homes up for sale than it did a year ago.
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it → have → sale
SQM's figures also showed there were 4,872 distressed sales across Australia in September, which was a 29 per cent jump compared to the same period last year.
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which → show → period
It follows the ABC reporting last week that Australian housing values had dropped for a sixth straight month, with many economists warning there will be further price falls ahead.
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economists → follow → month
Mr Lawless said Australian households were "deeply pessimistic" about the cost of living crisis, interest recent hikes and the budget's changes to property taxes creating "less favourable conditions".
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households → say → conditions
"Homes are taking longer to sell, auction clearance rates have held below average and advertised stock levels have risen across many markets," he said.
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he → take → markets
The Aporia
