Canberra auctions: Kambah home sells minutes after passing in under the hammer

With the first day of summer delivering great sunshine for the nation’s capital, it was perfect auction weather.

While Canberra’s temperature has risen, the clearance rate is continuing to go in the opposite direction – but auctioned properties are selling relatively quickly after auction, according to agents. 

A Kambah home sold on Saturday morning for $758,000, minutes after it was passed in under the hammer. The four-bedroom home at 27 Gallagher Street sold under auction conditions for $33,000 more than the highest bid.

There were four registered bidders at the auction, which Luton Properties Weston Creek and Molonglo Valley listing agent Justine Burke said was “good in the current climate”.

The initial bid of $690,000 came almost immediately after the bidding was declared open, but the second bid did not come with the same momentum. 

Auctioneer Tim Burke went to place a vendor bid but a bidder jumped in with a bid of $700,000 before he had the chance to. But, after nobody else was forthcoming, Mr Burke used a vendor bid to bring the price to $720,000.

A bid of $725,000 was then placed before bidding halted and vendor instructions were sought. After an interlude, Mr Burke returned and said the home would be passed in if no further bids were placed.

Minutes after the home was passed in under the hammer, the highest bidders negotiated a sale for $758,000.

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“This auction is reflective of current market conditions, clearance rates have been below 50 per cent for nearly two months now … this is just one of those auctions that needed a bit more work,” said Ms Burke.

While clearance rates have been down, Ms Burke said passed-in homes have been selling quickly after the auction.

“We’re finding if we put a good price on a property after auction, we are selling our properties straight away at full price within a week or two after,” she said.

“People are being a little more cautious at the moment so we are still selling properties, but people are just holding back a little more than they did three to six months ago.”

Over November – the busiest month for Canberra real estate – clearance rates were below 50 per cent every weekend. 

“A lot of stock came onto the market in October and November, and obviously lending has tightened up a lot,” said Ms Burke.

“That’s been happening for a while now but we are only just feeling the effects of that in the last couple of months.

“[Also] when it’s closer to Christmas, people’s focus changes and it’s always a risk at this time of year because people are thinking of other things.”

Despite the lag, in Canberra’s north, Fraser achieved a suburb record at auction, with the sale of 79 Bingley Crescent for $965,000.

Luton Properties Kippax listing agent David Konig said the five-bedroom home was a record breaker due to its “top-shelf” renovations.

“The property renovation and presentation was absolutely meticulous,” he said.

There were five registered bidders at the auction and it beat the previous suburb record by $24,000.

Mr Konig attributed the falling clearance rate to seasonal factors.

“I personally think it’s a seasonal thing and not a trend in the market. This time of year there is a flood of property for sale and that has a dampening effect on the market,” he said.

“I’m optimistic after the new year things will pick up.”

Indeed, Domain’s Property Price Forecast report predicts house prices in Canberra to rise 4 per cent over 2019.

According to Domain data, Canberra’s median house price currently sits at $740,215 and the median unit price is $412,888.