Canberra auctions: Duffy home sells for $632,000 amid slowing auction market

A three-bedroom Duffy home sold under the hammer for $632,000 on Saturday morning, in the face of the tighter lending conditions causing Canberra’s auction market to slow in recent weeks, according to agents.

Preliminary data shows the clearance rate for Saturday was 41 per cent, from 72 reported auctions – the lowest for 2018.

The home at 40 Burdekin Street, Duffy sits on an 815 square metre block and has undergone recent renovations, with an updated kitchen and bathroom.

It is north-facing to the rear and features a large entertainment deck.

There were three registered bidders at the auction and all participated on the day.

Bidding for the home started at $500,000, with four bidding increments – between two parties – of $25,000 taking the price to $600,000.

At this point, the stride shortened drastically with an increment of $2000 and then $3000 accepted.

Bidding moved in increments ranging from $1000 to $5000. At $625,000, the third registered party entered the competition.

At $631,000, Luton Properties Weston Creek and Molonglo Valley auctioneer Tim Burke went to seek instructions but came back almost immediately as the home was declared on the market.

There were two further bids of $500 before the home sold.

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Mr Burke attributed the success of the sale to the home’s entry-level price for the region.

“It was a nice home that underwent some updates, which made for good numbers coming through,” he said.

Duffy’s median house price is $625,000.

The sale of the house comes as Canberra’s auction market has slowed in recent weeks.  Last weekend, the clearance rate was 44 per cent – one of the lowest recorded for 2018.

Domain data released this week showed Canberra’s auction clearance rate for October of 55 per cent was the lowest monthly level since January 2017. 

“What we haven’t sold at auction has gone quite quickly thereafter at a good price, but the tightening up of finance has really thrown a break on things,” said Mr Burke.

“There are still buyers out there, but the hurdles to get finance organised has slowed things up.”

For most of 2018, Canberra has been defying the softening trends hitting Melbourne and Sydney. In Domain’s September quarter report, Canberra recorded the second-highest house price growth in the nation and weekend clearance rates have been consistently above 60 per cent.

There were 81 scheduled auctions on Saturday.