Canberra auctions: Yarralumla home sells for $3.3 million after passing in

A five-bedroom property in Yarralumla sold for $3.3 million post-auction on Saturday morning after it was passed in at a cheeky $3,200,001 bid.

The residence at 5 Hunter Street attracted many onlookers, including a handful of neighbours and two registered parties, who gathered under the wisteria-covered courtyard.

When auctioneer Dan McAlpine of Belle Property Canberra opened the floor to bids, one party quickly placed a $2.9 million offer – much to the surprise of many who gasped at the amount. 

One onlooker whispered that $2.9 million “wouldn’t cover the land value”. Details on the listing disclosed an unimproved land value of $2.54 million.

But after a few minutes, even with encouragement from McAlpine, no other parties threw their hat into the ring. McAlpine then placed a vendor bid of $3.2 million.

With no further movement from the audience, the opening bidder then raised the bidding by just $1 to offer $3,200,001. The property passed in only a short time later.

“That bidder saw an opportunity to secure exclusive rights to negotiate, and while it wasn’t enough to purchase the property, it was enough to get them to negotiate with the sellers,” said selling agent Tom Palmer, also of Belle Property Canberra.

While the property failed to sell on the auction floor, Palmer had secured a $3.3 million deal with the sole bidder a few hours later.

The property garnered a lot of interest throughout the auction campaign, which Palmer attributed to its prestigious Inner South location.

“It’s expected in a home here and on Hunter Street. It’s pretty unique, and it’s a reputable address, so there was no surprise there,” he said.

The sale comes after the Domain Auction Report for March put Canberra’s clearance rate at 54.1 per cent, down 2.8 percentage points from the month prior and down 18.8 percentage points from the same period last year.

While market conditions have changed dramatically from this time a year ago, Palmer said there were still “strong buyers out and about”, especially premium buyers looking at the Inner South.

“We’re certainly seeing properties pass in, but when you see that, it’s just part of the process,” he said.

“In Canberra, particularly, we see properties sell before auction, at auction, and after auction, and so, in a real estate agent’s toolbox, a sale at auction can be a great result, but sometimes it does take that little bit of extra negotiation after auction to secure the best possible price for all parties involved.

“We can look at clearance rates as a good leading indicator, but it’s never the whole story when you look at one particular property.”