Auction clearance rates show strength in Weston Creek, Molonglo Valley and Woden Valley over June

With mandatory online auctions now in the rearview mirror, Domain data has revealed buyers are out in full force with Weston Creek, Molonglo Valley and Woden Valley recording the highest clearance rates of all Canberra regions for June.

According to the data, Weston Creek and Molonglo Valley recorded an auction clearance rate of 90 per cent, followed by Woden Valley at 81 per cent.

Ryan Thomas, of Blackshaw Woden, Weston Creek & Molonglo, attributed the high result to families looking for three and four-bedroom homes in the regions.

“There are families who sold their houses prior to COVID-19 and decided to move in with their parents, they held off during the peak of the pandemic and are returning to the market and are ready to secure their new homes,” Mr Thomas said.

“There’s a big demand for houses and at the moment, there’s no amount of properties on the market that can cater to that demand. The stock is a lot lower this time of the year compared to last year.”

Meanwhile, Alexander Anlezark, of Instyle Estate Agents, said first-home buyers were also driving the strong clearance rate, noting that he sold a home in Rivett recently for more than $80,000 above the buying guide.

“The bang you get for your buck the further south you go is quite good,” Mr Anlezark said.

“It’s a central location wherever you are, whether that’s Woden Valley, Weston Creek or Molonglo Valley.

“It’s more of a lifestyle thing, a lot of people move out to be closer to the nature reserve including Mount Stromlo, while also being only a couple of minutes away from the city.”

Domain economist Trent Wiltshire said Canberra’s overall auction clearance rate reached 72 per cent in June, a 10 percentage point rise from May and a spike from the low 45 per cent clearance rate in April when COVID-19 restrictions were in place.

However, the number of homes scheduled for auction in June was 36 per cent lower compared with June 2019.

“While clearance rates have rebounded quickly, auction volumes remain weak,” Mr Wiltshire said.

“Auctions have become more popular over the past two years, making the volume comparison particularly stark and highlights the dramatic impact the current health crisis has had upon the market. 

“Auction numbers will likely continue to rise in the coming months as the ACT economy recovers.”

The strong clearance rate in June has followed through to July with the first weekend of the month recording a preliminary auction clearance rate of 85 per cent from 24 out of 33 confirmed auctions on that Saturday.

Of those, 22 sold and two were passed in.

More recently, last weekend the ACT had an 89 per cent clearance rate and the week prior had a clearance rate of 80 per cent.

“Buyers are at home a lot more than usual now with more people working from home,” Mr Anlezark said.

“I’m seeing a lot of people coming through who are upsizing because there’s a prospect of them working from home for the foreseeable future and they need more space to have that segregation of working from home and living there as well.”

Mr Thomas noted that the number of buyers at the moment had instilled confidence in the Canberra market and he anticipated this to continue moving forward.