Capital city auction rate plunges to its lowest levels since early last year

The combined capital city auction clearance rate has plunged to its lowest levels since April last year.

Markets not under lockdown are outperforming Sydney, Melbourne and Canberra. Picture: NCA NewsWire/Joel Carrett

Auction rates across the country’s capital cities have dropped to their lowest levels since April last year as Covid-19 lockdowns in Sydney and Melbourne continue to constrain the nation’s housing market.

CoreLogic data released on Monday shows 55.4 per cent of capital city houses taken to auction were successful, a drop from 64.3 per cent last week.

Most housing withdrawals occurred in Melbourne, which saw 867 homes taken to auction, and 64.3 per cent withdrawn.

Property inspections are banned under public health orders in Victoria, weighing heavily on the preliminary clearance rate, which was 34.7 per cent.

In comparison, 48 per cent of auctions were withdrawn over the previous week and a final auction clearance rate of 49.1 per cent was recorded.

Sydney recorded a preliminary auction clearance rate of 82.7 per cent, with 421 properties sold. Under the public health orders, one-on-one private home inspections are permitted, which has been helping to prop up the market.

Canberra’s primary clearance rate fell sharply to 63 per cent, its lowest level since April last year.

Tim Lawless, head of research at CoreLogic, said the restrictions in Sydney, Melbourne and Canberra were putting downward pressure on the combined capital city clearance rate.

Markets not under lockdown are outperforming Sydney, Melbourne and Canberra. Adelaide was the best performer, boasting a preliminary auction clearance rate of 81.3 per cent.

Brisbane recorded a preliminary auction rate of 81.3 per cent. In Perth, 72.7 per cent of auctions were successful, across 11 results.