Customs clearance rates at lowest since May 2020: report

According to the latest calculations of the real estate platform Auction reportthe clearance rate in Australian capitals was 51.8% in July, the lowest rate since May 2020.

This result reflects a fall of 30 basis points and an annual decline of 17.7%.

Across the country, every capital except Adelaide saw a clearance rate below 55%, with South Australia’s capital reaching 60.6% for the month.

The lowest reported was Brisbane at 38.6%, reflecting a monthly fall of 7% and an annual fall of 22%.

Sydney was the only capital to report an increase in its clearance rate in July, rising 1.8% to 51.9%.

However, despite the rise, the NSW capital recorded an annual loss of 18.3%.

Canberra saw the highest year-on-year change, with an annual change of -31.4%.

Regional Australia also reported a loss of 70 basis points in July, hitting a clearance rate of 42.8% for the month.

This figure represents an annual loss of 17.3%.

Domain said this was the lowest clearance rate for Australia’s combined regions since July 2020.

Homes have proven to be a consistent driver of this freefall, with capitals and regions combined reporting clearance rates of 52.5% and 41.5% respectively for July.

On a monthly basis, this reflects an increase of 20 basis points for Australian capitals and a loss of 1.5% for regions.

However, by year, this result is a decline of 19.5% and 18.5%, respectively.

By comparison, unit clearance rates rose across Australia in July, rising 2.4% in the capital and 5% in the regions.

Each year, they represent a decrease – although less – of 7.1% and 9.4%, respectively.

The results mark what has been a steady downward trend across the country for the past five months.

According to figures from Domain, in February 2022, the average clearance rate for a capital city was 66.9%.

For regional Australia, it was 58.4%.

Head of Research and Economics, Dr Nicola Powell, said rising interest rates “further accelerated downward pressure on prices, affecting the borrowing power of buyers and adding further pressure on affordability of mortgages”.

“It weighs on buyer sentiment and confidence and impacts clearance rates,” Dr Powell said.

Ms Powell added that Domain is also experiencing a higher rate of withdrawn bids, “indicating weakening market conditions as sellers withdraw their homes from auctions and perhaps consider other methods of selling instead. “.

Separate data from SQM Research released last month suggests troubled listings were growing across the country, rising 4.5% month-on-month in June.

RELATED TERMS

Auction

An auction is a public event for the sale of assets and goods to the highest bidder among a group of buyers.

Immovable

Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Immovable

Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Customs clearance rates at lowest since May 2020: report



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Last update: August 05, 2022

Posted: August 06, 2022