Canberra's monthly clearance rate the lowest in almost two years

Preliminary Domain data shows Canberra’s clearance rate last month dropped to its lowest level in almost two years.

From 322 reported auctions in October, 55 per cent sold under the hammer, down from 62 per cent in September.

The last time the clearance rate dropped this low was January 2017, where 50 per cent of properties sold at auction, however there were only 20 residential auctions over the month.

The clearance rate in October 2017 was 72 per cent.

All regions also recorded a fall in year-on-year clearance rate, with Gungahlin and Weston Creek experiencing the greatest falls, both having a 27 per cent decline.

Gungahlin’s clearance rate over October was the lowest at 47 per cent, followed by Tuggeranong at 49 per cent.

Belconnen recorded the strongest clearance rate at 69 per cent.

In the latest Domain quarterly report for September 2018, Canberra defied the national trend recording an annual growth in house prices of 4 per cent, but over the quarter Canberra recorded no growth.

Last Saturday’s clearance rate was 44 per cent – one of the lowest levels of 2018.

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While clearance rates were down year-on-year, the total sales supply was significantly up. Over October, supply for both houses and units in the nation’s capital was 2869. In October 2017, it was 2281.

The trend was echoed across the regions with only house supply down in Woden and unit supply down in Belconnen year-on-year.

The total sales supply of houses in the inner south was up by 63.2 per cent – the only Canberra region to experience a decline in median price over the September 2018 quarter.

Inner north’s unit sales supply was up by 38.5 per cent.

Molonglo Valley also recorded a significant increase in the supply of both houses and units, up 45.3 per cent and 50 per cent, respectively.

Average days on market was also up year-on-year for both houses and units. It is likely to take a vendor, on average, 60 days to sell a house, up 13.2 per cent on October 2017; and 108 days to sell a unit, up 14.9 per cent.

It’s a different story in the rental market where the total sales supply of both houses and units is down year-on-year.

The total number of listed houses to rent in October was 669, down 22.9 per cent and the number of units was 846, down 29.7 per cent.

Unit rental supply in Woden Valley had the greatest fall at 34.3 per cent. Houses in Tuggeranong were down 24.7 per cent.

Canberra’s vacancy rate currently sits at 0.6 per cent, according to SQM Research.