Auction watch: Changing of the guard as young families move into old Canberra

One of the hallmarks of Canberra’s auction market this year has been “a changing of the guard” as older residents downsize and young families try to snap up homes in some of the capital’s more established suburbs.

The sale of 14 Steele Street in Hackett on Saturday represented this wave of renewal.

About half of the 10 registered bidders vying for the double-brick, three-bedroom house were young families, according to Cameron Whitnall of McGrath Estate Agents Woden.

An opening bid of $700,000 climbed to $780,000 and, after a brief pause in proceedings, the biding continued north.

By the $820,000-mark the crowd of more than 40 people knew those bidding were playing for keeps.

Two parties tussled for the property before it eventually sold to a young Canberra family for around $900,000, contributing to a solid clearance rate of 79 per cent.

The capital’s auction market has been strong in recent weeks, with clearance rates of 74 per cent and 87 per cent recorded over the previous two weekends, according to Domain Group data.

Mr Whitnall said the original owners of 14 Steele Street were selling their home of more than 50 years and hoped it would be snapped up by a young family.

“That was the target market, young families,” Mr Whitnall said.

“There’s been a bit of a change of the guard on this street.”

Investors and some downsizers hoping to stay in the area were also among those registered to bid.

Mr Whitnall said Canberra’s property market was the strongest he’d seen in a number of years, with about 70 groups inspecting 14 Steele Street.

“I think it’s a combination of low interest rates and a lack of good stock on the market,” he said.

“People are screaming for really good houses and there’s just not enough on the market.”

It was a similar story on the other side of the lake, with Cream Residential selling two properties to young couples who had had missed out at a number of previous auctions.

“One of those couples is having a baby and just wanted to get settled,” he said.

The young family bought 5 Brand Street in Hughes for $875,000 and were among five registered bidders on Saturday.

The other property at 18 Foxall Street in Holder attracted 14 registered bidders before selling for $636,000.