Australia's auction clearance rates hit six-year low amid economic uncertainty
Consensus Summary
Australia’s auction clearance rates hit a six-year low in late June 2026, with fewer than half of homes selling at auction, marking the first time since April 2020 that rates fell below 50%. Sydney saw the highest number of withdrawn auctions (166), while Brisbane had the lowest clearance rate at 33.3%. The Reserve Bank held interest rates steady at 4.35% after three prior increases, reflecting economic slowdown and rising unemployment. Analysts attribute the decline to higher borrowing costs, reduced vendor confidence, and geopolitical uncertainty, including the Iran war and inflation. Meanwhile, proposed government reforms—such as a 30% capital gains tax and restrictions on negative gearing—are sparking political debate, with critics arguing the changes will worsen affordability while supporters claim they aim to help first-home buyers. Both sources agree the market is cooling, but differ slightly on exact clearance rates and pre-auction sale figures.
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Key details reported by multiple sources:
- Australia's weighted average auction clearance rate fell to 47% (ABC) or 47.4% (Guardian) in the week ending June 21, 2026, the lowest since April 2020.
- Sydney had 166 auctions withdrawn last week, the highest among capital cities, with only 225 of 645 auctions cleared (47.4% clearance rate).
- The Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35% in its June 2026 meeting, following three prior rate increases earlier in the year.
- Nearly 24% of scheduled auctions were withdrawn, and 48% of homes sold before auction (pre-auction sales).
- Government plans to introduce a minimum 30% tax on capital gains from July 2027 and restrict negative gearing to new builds are under debate in parliament.
Points of Difference
Details reported by only one source:
- Tim Lawless, research director at Cotality, predicted 'a further loss of momentum in the pace of growth in housing values' due to negative gearing and capital gains tax changes.
- Adelaide home values rose only 0.3% in the last four weeks, the lowest growth in over a year, while Brisbane was up 0.5% and Perth 0.9%.
- The cost of living, particularly in Sydney, is a major issue in the upcoming NSW election.
- Mr. Lawless stated that Sydney and Melbourne housing values have been falling since late 2025, with mid-size capitals also losing momentum.
- Annabelle Mezieres, an economist at Cotality, noted auction volumes are expected to ease further due to seasonal trends and weaker selling conditions.
- Melbourne's clearance rate was 50.6%, Brisbane's was 33.3%, Perth and Adelaide both saw 40%, and Canberra had 47.1%.
- Jane Hume, deputy Liberal leader, criticized the government’s negative gearing and capital gains tax changes as 'entirely unfair,' accusing politicians of using them to increase wealth.
- Greens senator David Shoebridge said the auction results showed the market is 'broken' and that affordability issues persist regardless of government policies.
Contradictions
Conflicting information between sources:
- The ABC states the weighted average clearance rate is 47%, while the Guardian reports it as 47.4%.
- The ABC mentions 225 of 645 auctions cleared in Sydney (34.9%), but the Guardian states Sydney’s clearance rate was 47.4% without specifying the exact number of auctions cleared.
Source Articles
Auction clearance rates fall to lowest level in six years
Not since the early days of the COVID-19 pandemic have sellers seen such disappointing results at auction, with Cotality predicting "a further loss of momentum" in the housing market.
Clearance rates hit six-year low as more than half of Australian homes up for auction fail to sell
Preliminary data show 47.7% of homes sold at auction in the week ending 21 June, the lowest rate has been since April 2020 Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Clearance rates in Australia’s capital cities have fallen to a six-year low, with fewer than half of homes at auction finding buyers. Preliminary data from Cotality shows 47.4% of homes that went to auction sold in the week ending Sunday 21 June. That figure is