CoreLogic’s preliminary auction results indicate the national commercial property auction clearance rate continues to trend downward. There were 62 commercial auction results captured over the two week reporting period ending July 5th, with 29 properties reported as sold, providing a clearance rate of 46.7%.
Victoria continues to deliver the strongest results with an auction clearance rate of 62.5% followed by New South Wales and Queensland at 40.7% and 25% respectively.
At a national level, the current auction volume level is tracking 50% lower relative to the high recorded in 2015 and 40% below than the 5-year median.
Recent interest rate cuts and further macro prudential changes should help to support auction activity, however the headwinds of lower business confidence and a slowdown in economic momentum nationally could continue to dampen the commercial property market performance over the second half of the year.