Canberra auctions: Bidding kicks off for the year but royal commission lurks in the shadows

Auctions kicked into gear this weekend in Canberra, but lurking in the shadows was the Financial Services Royal Commission, which is set to release its findings on Monday.

Many agents have blamed Canberra’s lacklustre clearance rates of the last few months on the royal commission, which has made it harder for buyers to secure the unconditional contracts necessary for auctions. 

Depending on the findings, the release of the report could have mixed consequences for the Canberra market, but agents believe the buoyancy of the nation’s capital will help to keep a steady market.

“We’re finding there’s a bit of a slow-down in the market mainly due to the banks getting finances through [for buyers], but apart from that we have had pretty strong numbers through the open homes we have conducted this year,” said Luton Properties Woden manager Anthony McCormack.

“I think there’s a certain confidence in the Canberra market and the media has been quite positive for the capital.”

The latest Domain data shows Canberra was one of only three capital cities to not experience a decline in house prices, however, growth did flatline over 2018.

According to some forecasts that’s as bad as it will get for the nation’s capital, with house price growth of four to six per cent predicted.

“I think it’s going to take a couple of months to really get a look at where 2019 is heading,” said Mr McCormack.

“This weekend will be a barometer of where auctions are clearing.”

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There were 31 scheduled auctions on Saturday, among them the home at 4 Shaw Place in Kambah.

Mr McCormack sold the home shortly after it passed in under the hammer.

Bidding was relatively swift for the home with only four bids placed between two parties.

The price kicked off at $550,000 and moved up in bidding increments of $25,000 until the price reached $625,000. At that point bidding stalled and Mr McCormack went to seek instructions.

After a brief lull of a few minutes, the auctioneer returned and the home was passed in.

Within half an hour of the auction finishing the highest bidders – a young family – secured the home for $670,000. 

Kambah’s median price sits at $550,000 and, like the wider Canberra market, growth stagnated in the suburb last year.