Realestate.com.au
QUEENSLAND’S property market has recorded its weakest auction performance since ex-tropical cyclone Alfred disrupted the State earlier this year, with buyer confidence continuing to soften under the weight of rising interest rates and cost-of-living pressures.
New preliminary PropTrack data shows Queensland’s auction clearance rate remained stuck at just 30 per cent for the second consecutive week – the lowest result recorded since the week of March 9.
Of the 303 auction results recorded across Queensland so far, only 91 properties sold, including 62 under the hammer, 25 prior to auction and four after auction.
Meanwhile, 212 homes failed to sell, with 160 passed in and a further 52 withdrawn from auction altogether.
Nationally, the preliminary clearance rate dropped to 47 per cent – its weakest result since May 2020 outside of the traditional Christmas and New Year slowdown.
PropTrack senior economist Anne Flaherty said the slowdown reflected growing caution among buyers as three consecutive interest rate rises, inflation and broader economic pressures continued to impact confidence.
“High inflation and cost-of-living pressures continue to weigh on household budgets and buyer confidence,” she said.
“There may also be some early signs of investors becoming more cautious following the Federal Budget’s changes to negative gearing and Capital Gains Tax concessions, which have reduced the attractiveness of residential property investment.”
Ms Flaherty said while a single weekend should not be viewed in isolation, the result aligned with broader signs of softening demand emerging across the housing market in recent months.
Queensland’s rapid price growth over recent years had also left some markets more exposed to changing buyer sentiment, she said.
However, more affordable areas across the State were continuing to perform strongly despite the broader slowdown.
“Many of Queensland’s more affordable areas, including pockets of Brisbane and regional markets, are continuing to outperform,” Ms Flaherty said.
Industry figures say buyers are still active, but many are no longer feeling pressured to make immediate decisions at auction.
Ray White Queensland auctioneer Tom Gunness said conditional negotiations following auctions were becoming increasingly common.
“Many buyers are preferring time to continue negotiations post auction with conditions,” he said.
“One bidder and two bidder auctions are becoming increasingly common and ensuring buyers’ comfortability in that negotiation forum can make the difference between selling and passing in.”
Despite the subdued overall market, Brisbane’s prestige sector continued to record strong results.
Ray White Collective’s major auction event on Saturday achieved a 50 per cent clearance rate and generated $8.5 million in sales under the hammer.
Among the standout sales was a luxury apartment at Coronation Drive, Toowong, which sold for $4.1 million, while a five-bedroom riverfront home at Indooroopilly fetched $4.4 million.
The former Coorparoo home of AFL great Michael Voss also changed hands over the weekend for $5.023 million.
The latest figures add to growing signs Queensland’s once red-hot property market may be beginning to cool.
