Canberra property: Kaleen home tops million-dollar mark to set residential record

A residential sale record for Kaleen was set last weekend when a five-bedroom home broke through the million-dollar mark. Potential buyers fought at auction to secure the family residence for $1,045,000, reaching a figure that smashed the previous sale record set at the end of last year by a massive $110,000. The two top prices achieved in Kaleen both sold under the hammer.

Record-breaking sales have been common across the region during the year. This market segment has been boosted by low interest rates that have aided the affordability of upsizing. As record-breaking sales are achieved and house prices steam ahead, it is likely to leave prospective first homebuyers feeling rather bleak at the future of owning a detached home.

The district of Belconnen is renowned for offering homes at a lower entry price point compared to some areas of the Territory. The price of a detached family home in Kaleen sits almost exactly at the current median price for Canberra and Greater Queanbeyan. The suburb has experienced strong house price growth, rising by 8.4 per cent annually to reach a median sale price of $630,000, a jump of $49,000.

A lower level of supply is likely to be one reason why buyers are forking out more to live in this sought-after Belconnen suburb. Supply dropped by 12.7 per cent to 69 properties listed for sale on allhomes.com.au throughout the first 10 months of the year.

A dip in demand did complement the fall in supply. Over the first 10 months of the year 64 properties sold, dropping by 13.5 per cent compared to the same period the year prior. The number of properties sold may have dipped but other indicators suggest there are still active buyers in the market vying for property.

Vendors found properties have spent five days fewer on the market compared to last year, selling in a mere 38 days on average. Kaleen vendors have not only experienced higher prices, and a faster rate to sell but they were also faced with a higher chance of selling at auction compared to last year. Over the first 10 months of the year 55 per cent of transactions sold at auction, with only 42 per cent successful under the hammer last year. These key market indicators suggest there are active prospective buyers keen to livge in Kaleen.

Nicola Powell is a property expert for Allhomes. Twitter: @DocNicolaPowell. The MIX106.3 Real Estate Show, Saturdays, 9-10am.