Australian properties are more likely to be sold for higher prices during the sunniest spells of weather, new data has revealed.
Whether this is because the sunshine puts investors in a better mood to part with their cash, or because real estate deals appear more attractive when a property is illuminated by the sun, new property market analysis from the University of Technology Sydney and the Chinese University of Hong Kong has found a direct correlation between better weather and higher property auction prices.
Using data from the Bureau of Meteorology relating to the years between 2000 and 2014, the study authors found that properties sold on sunnier days went for an average of 0.97 per cent more than those of similar value that came up for auction amid worse weather conditions.
This means buyers are apparently willing to pay almost $11,500 more for a home on a sunny day, based on the average Sydney property price tag of $1.2 million.
Overall, auction prices were found to rise by an average of 0.64 per cent ($7,400) on sunnier days, but rainfall saw auction prices drop by 0.17 per cent, adding further weight to the researchers' theory that the weather can affect property buying activity.
Co-author of the report Dr Adrian Lee of the University of Technology Sydney stated: "It's quite amazing - people are driven by weather despite this big decision. I didn't think [the link] would be so strong.
"It's not so easy to value property - you have to think of not only the cash flow, but the behaviour of people."
Overall, whether it was sunny or cloudy was the biggest driving factor behind increased auction prices, making more of an impact on buyers' willingness to spend than changes in the temperature or whether it was raining.
The findings of the study are to be presented by Dr Lee at the American Real Estate and Urban Economics Association Conference in January 2018, with research into the effect of weather on property buying activity in other Australian cities also in the pipeline.
