What is an auction clearance rate and what does it tell property investors?

Reviewed by: Nicholas El-Khoury

What is an auction clearance rate and what does it tell property investors?

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An auction clearance rate is the percentage of properties offered for sale at auction in a given market that are successfully sold — either at the auction itself or within a short period after. It is one of the most closely watched real-time indicators of property market health.

How it is calculated. (Number of properties sold at or after auction / Total number of properties listed for auction) × 100

Not all listed properties proceed to auction — some are withdrawn before the day. Different reporting agencies handle withdrawals differently, which can affect reported clearance rates.

What clearance rates indicate:

Above 70–75%. A strong sellers’ market. High clearance rates indicate that buyer demand exceeds supply — properties are selling at or above reserve price, often with multiple bidders. Capital growth typically accelerates in this environment.

60–70%. A balanced market. Properties are selling under normal conditions with competitive but not exceptional buyer demand.

Below 55–60%. A buyers’ market. Demand is softer than supply, giving buyers more negotiating leverage. Properties are more likely to pass in at auction and sell through post-auction negotiation at below-reserve prices.

Where to find the data. CoreLogic, Domain, and REA Group (realestate.com.au) publish weekly preliminary and final clearance rates for Sydney, Melbourne, Brisbane, Adelaide, Canberra, and Perth. The preliminary rate (published Saturday evening) tends to be higher than the revised final rate, as passed-in properties are reported later.

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