Auction clearance rates across Australia fell to their lowest level in six years last week as many vendors withdrew properties from sale amid uncertainty over a potential fifth interest rate increase this year. Data from property analytics firm Cotality showed vendors pulled scheduled auctions at more than twice the rate recorded a year earlier, with nearly one in four auctions canceled prior to their planned dates.

Cotality’s research director Tim Lawless noted that auction campaigns typically run for three to four weeks, meaning many were set before renewed expectations of a rate hike emerged. The move by sellers to withdraw listings without rescheduling contributed to a preliminary combined clearance rate for capital cities of 47.2 percent, down from 48.4 percent the previous week and the lowest since April 2020.

Sydney saw one of the highest withdrawal rates nationally at 30 percent, second only to the Australian Capital Territory’s 35.2 percent. In Sydney’s eastern suburbs, the sale of a four-bedroom Federation-style home in Bronte reflected apprehension among buyers and sellers alike ahead of the interest rate decision. According to Ray White Phillips & Co agent Alex Phillips, the property sold after a protracted auction lasting almost an hour, closing at $11.95 million against a vendor reserve of $12.6 million. Phillips said both parties showed caution, with buyers factoring in the anticipated rate rise in their bidding strategies.

Despite stronger listing withdrawals, Sydney’s clearance rate improved slightly to 53.8 percent from 48.2 percent the week prior, based on 511 reported results from 731 scheduled auctions. Meanwhile, Melbourne experienced a 22.9 percent withdrawal rate—its third-highest among capital cities—and its preliminary clearance rate declined to 49.5 percent from 54.8 percent the previous week. The number of scheduled auctions in Melbourne also fell sharply to 514 from 831 due to an unofficial long weekend preceding the Melbourne Cup horse race, but the reduced supply failed to support auction success.

In Balwyn North, inner-eastern Melbourne, a five-bedroom art deco home was re-listed with a significantly lowered guide price range of $2.6 million to $2.86 million after over a year on the market, a notable decline from an initial $3.3 million to $3.6 million valuation. Sales agent Neil Wang attributed the price drop to the changing market conditions. Elsewhere, a one-bedroom apartment in South Yarra sold for $425,000 after passing in at auction, despite original marketing between $400,000 and $440,000. The property appealed to first home buyers but featured an unusual combination of strata and company title arrangements, complicating financing and ultimately resulting in an investor sale, Woodards agent Edward Carlile said.

The most pronounced signs of market weakness were observed in Brisbane, where the preliminary clearance rate remained low at 26.2 percent, slightly up from 25.2 percent the previous week, even as scheduled auctions increased to 238 from 199. Lawless described the sustained low clearance rates as evidence of a fundamental disconnect between buyer and seller price expectations, signaling a persistent slowdown rather than short-term volatility.