Another weekend has passed, and once again we’ve seen the auction clearance rate hold steady in that 70%–80% range. It’s a clear sign that the market remains resilient, even with the number of new listings on the rise and buyer activity starting to spread across different price points.

Scheduled Auctions
1196
Reported Auctions
678
Total Sold
560
Total Passed In
118
Clearance Rate
83%

Scheduled Auctions
1075
Reported Auctions
817
Total Sold
574
Total Passed In
177
Clearance Rate
70%

However, behind the headline numbers, there’s a growing conversation about the impact of government policy particularly around land tax. Under the current state Labor Government, we’re seeing many investors and even holiday home owners re-evaluating their positions. The increases in land tax have started to bite, and for some, it’s becoming financially unsustainable to hold onto properties that don’t generate income.

This issue is particularly pronounced in coastal and regional areas, where a large number of properties are owned as holiday homes or occasional-use residences. These homes often sit vacant for much of the year, bringing limited or no rental income, yet their owners are now being hit with significantly higher annual land tax bills. The result is that many long-term owners often families who have held their beach houses for decades are being forced to consider selling.

The problem, however, is that demand in these markets is changing. With the added costs, fewer people are looking to purchase a holiday home purely for lifestyle reasons. The post-COVID travel boom has faded, and with rising costs of living and interest rates still elevated, many are choosing to holiday differently either locally for shorter periods or overseas where value can often be better. That shift in behaviour means fewer visitors spending time (and money) in these regional communities, impacting local cafes, retailers, and service providers who have traditionally relied on seasonal tourism.

So, what happens when owners want or need to sell, but buyers are hesitant to take on the same financial burden? We risk seeing stagnation in parts of the coastal and regional market properties sitting longer, prices softening, and local economies feeling the ripple effects.

While the metropolitan clearance rate remains strong for now, these broader structural issues could start to shape the next phase of the market. The question isn’t just about what the clearance rate is today but whether government policy will adapt to support a balanced property environment that sustains both investors and lifestyle buyers, without punishing those who simply wish to hold on to a family getaway.

For now, the numbers show stability but sentiment is shifting, especially outside the city.