Are Canberra's softening auction clearance rates here to stay?
With Canberra’s auction clearance rates softening, we turned to local agents to ask if this was a cyclical blip or a sign of changing consumer sentiment around the auction process.
According to the Domain Auction Report for February, Canberra’s auction clearance rates have dropped 18.9 per cent from 12 months ago and are now sitting at 58.2 per cent.
Tim Burke of Luton Properties Weston Creek and Molonglo Valley says a range of external factors and market expectations are playing significant roles in declining clearance rates.
“Interest rate increases, inflation and tighter lending conditions are all feeding into buyer sentiment,” he says.
“And it would be fair to say there has been a gap in price expectations between vendors and buyers.”
Burke says this has led to a smaller pool of bidders at auction – sometimes only one or two – with bids often failing to meet vendor expectations.
“Of course, a sale can still be made and it’s up to the agent to bring the parties together if there is enough common ground,” he says.
Alexander Anlezark of Belle Property Canberra says despite the market dynamics, auctions are still the most preferred sales process in the capital.
“Auction clearance rates get the media attention because they are reported, but the same market dynamics are at play in sales by private treaty,” he says.
“Agents still need to bring vendors and buyers together through that process. Many vendors are still influenced by COVID sale prices, while buyers are now more cautious about what they are prepared to pay – and they are being very selective around what they want to buy.”
- Short and sharp: Properties going to auction tend to spend less time on the market, propelled by a short, sharp marketing campaign with a defined end date and an unconditional sale – if successful.
- Prepared buyers: Buyers understand they need to be prepared with either cash or pre-approved finance. They like the transparent nature of bidding and its ability to determine the market value of any property.
- Early bird? The best time to hold an auction is said to be 9am, with anecdotal reports suggesting up to 75 per cent of those held at this time result in a sale.
Check out our top pick of homes going to auction:
Curtin
Here’s a brand-new Curtin home with crisp, clean lines that fit neatly into the environment. The four-bedroom, single-level contemporary residence presents a pleasing low profile with its flat roof and light-grey feature-brick and timber exterior.
The combination puts it perfectly at home on its 685-square-metre block in a leafy and private cul-de-sac location.
Inside, the home delivers 280 square metres of living, highlighted by plenty of light drawn in through big picture windows, skylights and a central courtyard – all amplified by high ceilings.
Toward the front of the home, the floor plan offers formal living, a study and two bedrooms – one being the main suite.
That zone connects to the central kitchen, meals and family zone with access to a generously covered al fresco area. Two further bedrooms and a rumpus room complete the layout.
The kitchen steals the limelight with its stone island – warmly contrasted by timber cabinetry – Bosch appliances and a huge butler’s pantry with a second dishwasher, cooktop and further bench and storage space.
The generous family living area is warmed by a gas fire while the dining space opens to the large outdoor area with a built-in barbecue and bench.
The main suite gives parents the ultimate sanctuary with a spacious walk-in wardrobe and a luxurious en suite with a free-standing bath.
There are three further bedrooms with built-in robes and two further bathrooms.
A mudroom is a welcome addition off the double garage.
Price guide: $2.5 million+
Auction: 10am, April 1
Agent: Luton Properties Weston Creek and Molonglo Valley, Tim and Justine Burke 0411 878 587
Or try these:
Kambah
Price guide: Mid-$900,000s+
Auction: 10am, March 25EER 1
Agent: The Property Collective, Will Honey 0407 245 177
Denman Prospect
Price guide: $1.45 million+
Auction: 5:30pm, March 29
Agent: Belle Property Canberra, Alexander Smout 0421 148 706
Bonner
Price guide: $1.2 million+
Auction: Noon, March 29
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