Auction watch: Demand for homes in central Canberra continues to outstrip supply

A lively contest for a Yarralumla property on Saturday mirrored the competitiveness of central Canberra’s auction market – and just how tightly-held large blocks are in these suburbs.

It was a battle for the three-bedroom, double red brick house at 9 Maxwell Street, with 10 registered bidders vying for the 1017-square-metre block.

It was also the first time the original home had been sold in 50 years, remaining with the same family since 1956.

An opening bid of $1.2 million got the ball rolling, with the price quickly climbing past $1.3 million.

Just as the contest looked like it might come to a close, a prospective buyer emerged from the crowd, keen to register and bid.

Herein, three parties tussled for the property before the latecomer sealed the deal with a winning bid of $1.37 million.

The day’s top sale under the hammer contributed to a solid clearance rate of 87 per cent, according to Domain Group data.

Selling agent and auctioneer Mario Sanfrancesco of Peter Blackshaw Real Estate Manuka said the successful buyer belonged to a family who had recently moved to Canberra’s inner south.

He said the vendors were happy with the result but would say “goodbye” to their home of five decades with mixed emotions.

“The vendors are very happy with the price, clearly, and they’re very happy with how today went but they’re slightly emotional,” he said.

“It was well beyond where the owners expectations were and well beyond what we discussed as a potential sale price.

“However, it’s no incredible surprise given the location and the opportunities this property offers in terms of doing something with what’s here or building a new home in this location.”

The north-facing house features spacious living and is surrounded by lush garden.

Mr Sanfrancesco said the sale represented just how sought-after good blocks of land were in the inner south.

“There’s very little supply and there’s a pool of buyers keen to buy property in this area; Yarralumla, Red Hill, Griffith, Deakin, Narrabundah,” he said.

“I guess it’s showing the market will continue to be strong.”

5 Dandenong Court, Palmerston. 

It was a similar story in Gungahlin where six families tussled for a four-bedroom house at 5 Dandenong Court in Palmerston.

LJ Hooker Gungahlin agent Hugo Mendez said a family living in the area but hoping to up-size secured the property for $840,000 – about $90,000 more than expected.

“I think that type of property has increased in demand,” Mr Mendez said.

“There’s less and less on the market, especially in Palmerston. I’ve seen a lot of the same people. It’s definitely a strong market there.”