Record February Ends With Market Cool Off
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Record February Ends With Market Cool Off

Late summer listings ease clearance rates.

By Terry Christodoulou
Mon, Feb 28, 2022Grey Clock 2 min

The high volumes of homes that went to auction through February has finally eased clearance rates.

Despite a largely positive weekend across the nation’s capitals, the clearance rate has finally succumbed to the volume of listings that has inundated the market this past weekend and throughout February.

The national auction market reported a significant increase over the weekend, with a total of 2627 listings reported compared to the previous weekend’s 2341 and ahead of the 2163 reported for the same weekend last year.

The high volumes led to a national clearance rate of 77.9%, the lowest for the month. This is compared to last weekend’s 81.5% and well below the 83.3% recorded over the same weekend last year.

Capital city markets face a challenge with the first ‘Super Saturday’ of the year next weekend likely to put downward pressure on clearance rates.

Sydney saw another strong clearance rate despite yet another record February day for auction listings with 965 properties listed — up on the previous weekend’s 878 and higher than the 734 reported over the same weekend last year.

The NSW capital recorded a clearance rate of 78.8% at the weekend — higher than the 78.1% reported over the previous weekend but well below the 90.0% recorded over the same weekend last year.

Sydney recorded a median price of $1,755,000 for houses sold at auction at the weekend which was higher than the $1,750,000 reported over the previous weekend and 6.7% higher than the $1,645,000 recorded over the same weekend last year.

In Melbourne, the weekend auction market reported a significant day of auctions with 1288 homes listed — higher than the previous weekend’s 1129 and above the 1211 reported for the same weekend last year.

The Victorian capital posted a clearance rate of 71.4% on Saturday, a 4-weekend low and well below the 82.0% recorded over the same weekend last year.

Melbourne recorded a median price of $1,187,000 for houses sold at auction at the weekend which was higher than last weekend’s $1,165,000 and 18.4% higher than the $1,005,000 recorded over the same weekend last year.

Data powered by Dr Andrew Wilson, My Housing Market.

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New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.