Canberra auctions: Ainslie home sells for $1.385 million after marathon effort

An Ainslie home, in a tightly held street, sold under the hammer on Saturday morning for $1.385 million.

While house prices have been falling nationally, Canberra has defied the downward trend recording a median growth of more than $28,000 over the last 12 months.

The Inner North’s median house price has had the strongest growth of the Canberra regions at $82,000 over the year, bolstered by Ainslie – one of the best-performing suburbs.

In the 12 months to June 2018, the suburb’s median grew by a whopping 24 per cent. 

According to Domain data, out of 22 three-bedroom homes auctioned this year in Ainslie, there has been a clearance rate of 85 per cent, and so odds were in favour of 5 Fisher Street selling under the hammer.

The three-bedroom, plus study, home sits on the edge of the Mount Ainslie Nature Reserve and underwent a significant renovation in 2011.

Fisher Street is tightly held, only two houses have sold in the cul-de-sac since 2013 – including an off-market sale for $1.84 million in 2017. 

Despite this, a marathon effort went into selling it.

• Related: ‘What’s meant to be will be’: Canberra’s Raize the Roof home goes under the hammer 
• Related: Hackett home sells under the hammer for $910,000
• Related: Scullin sale proves Belconnen is worthy of auction powerhouse status

Three of five registered bidders participated in the auction, with bidding kicking off at $1.1 million. This was countered by a bid of $1.15 million. Two bids in increments of $30,000 and $20,000 took the price to $1.2 million.

LJ Hooker auctioneer Kaylene King went to call the home, but a bid of $1.25 million was placed, followed by one for $1.275 million.

Bidding moved in increments of $25,000 until the price reached $1.325 million when the stride shortened to $15,000 and $10,000.

At $1.36 million bidding halted, and instructions were sought from the vendors. There was a period of negotiation, during which the highest bidders – who have been searching for more than 18 months – increased their bid twice to $1.375 million and then $1.385 million. 

When the home was declared for outright sale, the hammer fell shortly after.

“It was way tougher than I hoped,” said LJ Hooker Dickson listing agent Stephen Bunday. “But that has been the trend recently.”

Despite annual growth in the Inner North, Mr Bunday said there had been a slowing in recent weeks.

“This change has only really happened in the last few weeks, the numbers coming through the opens has dropped, the number of registrations, in general, has dropped, and auctions have gotten harder,” he said.

Mr Bunday said he believed the change had been driven by a combination of affordability, and fear, driven by “media hype”.

“Canberra is really strong – there’s really low unemployment, good job security, high median incomes, strong population growth and there’s a really tight rental market, there’s no reason for it other than affordability and fear,” he said. 

Last weekend, Canberra recorded a clearance rate of 45 per cent – one of the lowest of the year. 

Melbourne and Sydney’s clearance rates last Saturday were also down, the lowest recorded in years. Both cities have faced an annual decline in house prices.

There were 78 scheduled auctions in Canberra on Saturday. Next weekend, the number of properties set to go under the hammer is 95.

Typically, the volume of auctions in the nation’s capital is highest in November.