'Canberra set to become the auction capital of Australia': Domain data

If you own a three-bedroom home in Belconnen priced between $550,000 to $750,000 and are selling via auction on a Wednesday night, luck is on your side.

Domain data, released today, shows homes in the north side region are the most likely to sell under the hammer and that Wednesday auctions record the highest clearance rates.

The data shows Canberra has the equal greatest proportion of houses sold at auction in the nation – tied with Melbourne –  with 32.4 per cent selling under the hammer over the past year.

Domain senior research analyst Dr Nicola Powell said, “Canberra is set to become the auction capital of Australia”.

“With slowing conditions in Sydney and Melbourne auctions easing, that’s not the case in Canberra,” she said.

Over the past decade, the number of properties sold via auction in Canberra has more than doubled from 9.1 per cent in 2008 to 22 per cent this year.

“Auctions have experienced a meteoric rise in popularity in Canberra in such a short time,” said Dr Powell.

“Ten years ago in Canberra you would be selling a house by private treaty but now many are choosing to sell via auction.”

While data shows 32.4 per cent of houses sold under the hammer, only 6.4 per cent of units sold at auction.

“Canberra has experienced a wave of developments and a lot of those don’t go to auction as they have sold off-the-plan. I predict the figure will grow as we see development slow in Canberra,” said Dr Powell.

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In Canberra, the median price of houses sold under the hammer is $740,000, which equates to $100,000 more than houses sold by private treaty.

For units, the median price is $543,000, which is $113,000 more than units sold by private treaty.

“Naturally the median for homes that go to auction is higher because of the calibre, but I think more sellers are now understanding it doesn’t have to be a suburb record-setting property that goes to auction,” said Peter Blackshaw Manuka auctioneer Alec Brown.

“Transparency is important for most people and the auction process offers that because it’s tangible and you can see what is happening in front of you.

“As a seller, there are some obvious benefits over private treaty, particularly with current lending conditions as they have the confidence of moving forward with unconditional offers.”

Last week at the REIACT Awards of Excellence, Mr Brown won the title of ACT auctioneer of the year.

Today 102 properties are set to go under the hammer in the nation’s capital – the biggest auction day for 2018, ahead of the Labour Day long weekend.

On the same day last year only 65 properties went under the hammer, however, it fell on the Family and Community Day long weekend which is no longer celebrated.

“What’s different about this year, compared to last year in the spring market, is there was a double public holiday that forced the selling season into a condensed October/November period, but this year we have seen buyer interest perk up from August onwards,” said Mr Brown.

Mr Brown is expecting a big day.

“Campaign numbers look good and there seems to be a renewed energy as the spring market place takes hold,” he said.