Summary
Auction clearance rates are one of the first numbers I look at when assessing the Sydney property market.
They are not perfect, and they should never determine whether you buy a particular property, but they give buyers a useful snapshot of competition and confidence in the market.
Whether you are buying your first apartment or your fifth home, understanding clearance rates can help you read market conditions rather than relying on headlines.
What Is an Auction Clearance Rate?
Put simply, the clearance rate measures how many properties scheduled for auction successfully sell.
When clearance rates are consistently high, it generally indicates stronger buyer demand and competition. When they fall, buyers tend to have more negotiating power and vendors may need to adjust their expectations.
The important word is consistently.
I would never read too much into one Saturday. Public holidays, school holidays, weather and the quality of properties being auctioned can all influence an individual weekend.
The trend over several weeks tells you far more.
Where Can You Find the Latest Auction Clearance Rates?
This is where buyers can get confused because Domain, REA and SQM Research can all publish different numbers for the same market.
Domain publishes auction results through its Research section and collects results from selling agents and its own data collection team. Its preliminary clearance rate is available on Saturday, with further results collected during the following days.
REA and PropTrack also publish preliminary weekend auction results. These are useful if you want an immediate indication of how Saturday’s market performed.
For a more complete picture, I also follow SQM Research, which provides its auction data free online.
SQM normally publishes its results on Tuesday afternoon covering the previous week through Sunday. Rather than relying solely on results reported immediately by agents, SQM monitors property listings to determine what happened to scheduled auctions.
Why Does SQM Research Show a Different Clearance Rate?
This is an important distinction.
The Saturday numbers you see reported by Domain and REA are preliminary. They provide an early read of the market, but not every auction result has been reported at that point.
Domain itself notes that its final result can be lower once outstanding results are collected.
SQM takes a different approach. Its clearance rate is calculated using properties sold prior to auction plus those sold at auction, divided by the total number scheduled. Properties sold after auction, withdrawn, rescheduled or subsequently advertised for private treaty do not count as successful auction clearances under its methodology.
That means the SQM figure can be noticeably lower than the preliminary Saturday number.
Neither number should be looked at in isolation.
If I want to know what happened today, I’ll look at the preliminary Saturday results. If I want a clearer view of the underlying trend, I’ll look again once the fuller data is available.
Why Clearance Rates Matter for Property Buyers
Clearance rates help you understand the balance between buyers and sellers.
If rates have been falling for several weeks, I would expect to see more properties passing in, longer campaigns and greater flexibility from some vendors.
That can change how we approach a purchase. Instead of feeling pressured to make an aggressive pre auction offer, there may be value in waiting for auction day or negotiating with the vendor afterwards.
When clearance rates are climbing, the opposite can apply. Competition may be returning and quality properties can become harder to secure.
Don’t Confuse the Sydney Market with Your Market
This is why following the trend matters.
This is probably the biggest mistake buyers make with clearance rates.
A Sydney wide number might tell you the general direction of the market, but it does not tell you exactly what is happening with three bedroom houses in Mosman, apartments in Wollstonecraft or family homes in the Inner West.
Property markets are incredibly local.
We can have a softer Sydney market while an A grade home in a tightly held street attracts six registered bidders.
The clearance rate provides context. Comparable sales, buyer depth, vendor motivation and the quality of the individual property still determine how we approach the purchase.
How I Would Use Clearance Rates as a Buyer
Don’t obsess over the number every Saturday night.
Instead, track the results over four to six weeks and compare them with what you are actually seeing at inspections and auctions.
Are properties passing in? Are agents calling you after opens? Are price guides changing? Are vendors accepting offers before auction?
When those observations start matching the clearance rate trend, you have a much clearer picture of where the market is heading.
For our clients, this is one of several indicators we use when deciding how aggressively to pursue a property, when to negotiate and when patience may produce the better outcome.
By Dan Grantham
