Canberra auctions: There's a new norm emerging in the market

Buyers are increasingly holding back under the hammer and opting to negotiate after auctions.

With clearance rates showing less than half of Canberra’s auctioned homes selling under the hammer, auctions in the capital are now starting to favour buyers.

But agents said homes were still selling relatively quickly after auction.

Belle Property Kingston agent Leanne Palmer said it was common in the current market for sales to be negotiated after the auction.

“Auction rates on the day are down but sales are still continuing; if we are not selling under the hammer we are often selling in negotiations afterwards,” she said.

“If not, then we are then putting the price out to the market and we can attract some new interest because buyers know the asking price.”

Ms Palmer was the listing agent for 41 Hicks Street in Red Hill which was auctioned on Saturday morning.

The three-bedroom, one-bathroom home did not sell under the hammer but found a buyer shortly after.

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Belle Property Kingston auctioneer Louise Harget kicked off the auction by calling for an opening bidder offer of around $1 million.

A bidder then put forward a bid of $900,000, which Ms Harget accepted, but she indicated they were well below the reserve.

“[The bidder] started very low and it was worth a try – a bit cheeky,” said Ms Palmer.

With no other bidders coming forward, Ms Harget placed a bid on behalf of the vendor for $1.05 million. 

There was a lull but the bidder came back with a bid for just $2000, so they could be in front of the vendor bid and get exclusive negotiating rights.

Ms Harget called the strategy “smart” before she passed in the home.

The home sold in negotiations after the auction to the highest bidder for $1.19 million.

Elsewhere, a three-bedroom home in Bruce bucked the trend after it sold under the hammer for $718,000.

LJ Hooker Belconnen listing agent Robert Murphy said there were six registered bidders vying for the 12 Goldman Street home, with bidding kicking off at $650,000.

It moved in increments of $10,000 and $20,000 until the $710,000 mark. At this point, two bidders remained in the race for the keys and fought it out in increments of $1000 and $2000.

Mr Murphy attributed the popularity of the home to its downsizer appeal. 

“What I found is the property fitted a unique niche – most of the people bidding were looking at downsizing options,” he said.

“It was appealing because there were no body corporate fees and it was a separate title.”

The home sits on a 420-square-metre block and has 120 square metres of internal living.

Mr Murphy said while the market had been difficult in recent times he expected Canberra to bounce back. 

“I’m still finding the market is a tough environment, particularly with everything going on in the banking industry,” he said.

“The market goes up and down but I think the Canberra market will start to rebound in the next few months.”