Records now the new normal: Canberra agents weigh in on how the property market is tracking in Autumn

Auction clearance rates in Canberra soared to a record high of 94 per cent earlier this month, according to recent data, and results in the high ’80s are becoming the new normal. 

At least 10 suburb sale records have also been struck in the past few weeks as ANZ Research economists predict 2021 price growth as high as 16 per cent in Canberra.

Andrew Potts of Independent Gungahlin says a tightened stock level is the main driver.

“I’d say, compared with previous years, listings would probably be down 20 to 30 per cent,” he says.

“A lot of home owners are holding off selling as they are also seeing the buying competition.”

Potts says the frequency of new price records is primarily driven by what is available.

“Buyers are responding to what comes to the market and their own perception of relative value,” he says.

“It can mean different things to different people, and that determines what they are prepared to bid.”

Nick Purnell of Purnell says there is an urgency within a highly motivated buying group pushing prices upwards.

“I’d definitely say a fear of missing out (FOMO) is a real thing in this market,” he says.

“That’s being fuelled by tight supply and low interest rates – with the likelihood they will be with us for some time.”

Purnell says out-of-town investors are also playing a role in increased demand.

“They see Canberra as a safe investment option, viewed through the fundamentals of a market that has weathered the pandemic,” he says.

• Auctions. Clearance rates are historically high, driven by tight supply, low interest rates and a fear of missing out. That potent combination ensures strong offers before or spirited bidding on the day.
• Records. Suburban sale records for detached family homes are falling like nine pins. Competition to acquire is fierce, and buyers are pushing prices higher, especially when low interest rates encourage higher borrowings.
• Situation normal. Messaging from the RBA suggests low interest rates will be with us for some time. Cheap money often means bigger loans. And tight supply isn’t changing any time soon.

Check out our top pick of homes on the market:

Wright

View property

Overseas travel restrictions have put a new emphasis on the appeal of the resort-style home – one with all the comforts – and the best of outdoor living.

This new Wright residence muscles up with plenty of both, including a pool and a basketball shooting zone.

This very practical home delivers 385 square metres of internal space but sets itself apart with some welcome extras. 

Highlights include 3.3-metre ceilings in the living areas, big Italian tiles and 2.7-metre double-glazed windows. There’s also a six-metre-high rock feature wall and a gas log fireplace in the family room.

The lower level comprises a formal living and dining room, an open-plan kitchen-family-casual meals area, a media room and a separate study. There’s also a bedroom and a bathroom.

The kitchen bristles with Smeg and other premium brand appliances, including a cooktop, ovens and a coffee machine.  There is even a boiling, chilled and sparkling water tap.

The kitchen is supported by a butler’s pantry with a sink and dishwasher.

The family room overlooks an 11-metre lap pool with a separate spa and a wall fountain. There’s also a large covered and tiled al fresco area with an outdoor kitchen, including a bar fridge.

Upstairs are three more bedrooms, including a main and en suite, another bathroom and access to a large entertaining balcony and terrace.

Comfort is delivered through ducted heating and cooling and in-slab heating on the lower level.

Price guide: $1.5 million +

Auction: 1pm, April 10

Agent: Independent Gungahlin, Andrew Potts 0404 895 162

Or try these:

Holt

View property

Price guide: $900,000 +

Auction: 6pm, April 8

Agent: Luton Properties Manuka, Sophie Luton 0410 750 413

Kambah

View property

Auction: 5:30pm, April 21

Agent: The Property Collective, Jacob Stanton 0499 999 734

Red Hill

View property

Auction: 10am, May 1

Agent: Luton Properties Manuka, Sophie Luton 0410 750 413