Are apartments or houses selling better in Canberra’s current market?

There is an element of uncertainty in Canberra’s current market over whether homes will sell at auction, agents say.

On Saturday, the preliminary clearance rate for homes listed to go to auction in Canberra was just 58 per cent, down from 74 per cent for the same time last year, according to Allhomes data.

There have been more homes either selling prior to auction or hours after proceedings, with agents eager to sell with any realistic pre-auction offer and sellers willing to meet buyers in the middle.

Despite lower-than-before clearance rates, there are still certain buyers who are interested in both units and houses, said selling agent Lucia Marzano of Badenoch Real Estate. 

“We mostly see young families searching for houses in school catchment areas, close to shops and locations that are centrally located,” she said. 

“On the other hand, we are seeing mostly first-home buyers looking towards apartments – couples and singles alike.” 

Christine Shaw of Blackshaw Manuka said there has also been a growth in bigger groups looking towards apartments too.

“There is more interest in three-bedroom apartments, as the cost of free-standing houses has increased so much,” she said. 

With interest all over the place and interested groups changing among the property types, Marzano and Shaw both said there is a need for different methods to be considered for homes to sell, including fixed prices or guides being attached to listings. 

“Apartments and houses both sell well at auction, but it does depend on how many apartments are selling in the area and whether a fixed price is the best strategy,” Shaw said. 

“I’ve auctioned a one-bedroom apartment in Braddon recently that had a unique courtyard space that was not comparable to any others, but I am about to launch a two-bedroom unit in another part of Braddon for a fixed price, as there are similar options nearby.

“Sticking to one strategy is never a good idea, it has to be a per-property strategy in the best interests of the clients.” 

Marzano added apartments have continued to stay strong since the beginning of this year, as they mostly come with prices within listings. 

“It is very different to what the market brought during the pandemic … some buyers are fatigued by the auction process with the majority of homes going to auction,” she said. 

“We just had a very successful campaign in Kaleen with the property, a house, listed with a price as opposed to going to auction. 

“It will be interesting to see what the rest of 2023 brings with vendors and agents needing to work on different approaches with the market.”

With this in mind, it may still be difficult to determine exactly what the right approach is for each home that is selling, as “the market right now is simply unpredictable”, Shaw added. 

“We are still achieving record sales for suburb prices in some locations around Canberra,” she said. 

“Agents must be open to taking guidance from buyers in the current market about what their pricing feedback is.

“Houses and apartments sell in every market, as long as sellers understand the market at the time they launch.”