During February, most of the Australia major cities have more Apartment auctioned than House, that's a sign of house market is losing momentum. In Sydney, Brisbane, Adelaide and Canberra, affordability constraints and the return of investors meant Apartment were closing at a higher rate than houses, according to Domain's February auction report.
Melbourne is the only city bucking the trend, with house prices still attractive due to more modest house price growth and the highest vacancy rate compared to other capital cities, according to The Age. Overall, both Sydney and Melbourne housing markets are softening, with Sydney's February clearance rate of 68.4 per cent (down from 80.5 per cent a year earlier) and Melbourne's 69 per cent clearance rate in February (down from 73.1 per cent a year earlier) ).
"This marks an inflection point for the Sydney market, with units outperforming houses," said Domain director of research and economics Nicola Powell. In addition, auctioneer Arch Staver said buyers in Melbourne were following the world's longest lockdown. Prefer detached houses to apartments. "No one wants more space than Melburnians," he said.
The gap between houses and apartment hit $870,000 in Sydney and $470,000 in Melbourne, forcing buyers to opt for more affordable apartments. Auctioneer Damien Cooley said: "The house market has risen to an unbelievable level, the apartment market has not kept up, which is why we're going to see apartments doing better because from an affordability standpoint, people are Will look for something valuable and affordable."
Industry insider Thomas McGlynn said extremely tight vacancy rates and the reopening of international borders meant apartment were once again an attractive investment. But he also noted that while auction volumes were at record highs, unrealistic asking prices were also hindering Sydney's clearance rate.