The Canberra region where auction clearance rates plummeted by almost 50 per cent

While almost all Canberra regions recorded a decrease in auction clearance rates for the month of June, one particular region’s clearance rates plunged by almost 50 percentage points.

The Domain Auction Report revealed the clearance rate in Weston Creek in June dropped by 47.9 percentage points from the same month the year before to hit 44.4 per cent — the lowest of all Canberra regions. 

Gungahlin was the second lowest, recording a clearance rate of 49.3 per cent, down 27.3 percentage points from the previous June; followed by Tuggeranong, measuring at 55.9 per cent, down 34.1 percentage points from June of the year prior. 

This comes after Canberra’s overall auction clearance rate hit 59.6 per cent for the month of June — the first time the capital’s monthly clearance result fell below 60 per cent since April 2020.

Despite the significant drop in auction clearance rates, auctioneer James Scott of Independent Woden & Weston Creek said Weston Creek wasn’t the only region experiencing downfalls.

“The decrease in the clearance rate is not Weston Creek specific, and is being felt across the whole market,” he said. 

“For the last three years, June has been the lowest selling month for the region, but has always bounced back strongly to a peak in November. 

“I’m confident we’ll see this trend continue as buyers return from their school holiday break and refocus their efforts to secure their new home in such a beautiful corner of Canberra.” 

Scott said that the drop in clearance rates was an opportunity to bring buyers back to the table as “Canberra [returns] to a point of equilibrium, which was inevitable”. 

“The mentality of buyers in the market has shifted slightly, with some sitting and waiting – or hoping – for the market to drop,” he said. 

“With the change, we have adjusted some of our auction campaigns to four or five weeks to allow more time to motivate buyers to make a decision.

“Auctions are still a great tool when used to their potential … I believe Weston Creek remains a strong market.” 

Elsewhere, the only region where auction clearance rates increased was the Inner South at 80.6 per cent in the month of June, up 8.9 percentage points from the previous June — which also recorded the highest clearance rate.

Real estate agent David Stokes of Blackshaw Manuka said while there was a decrease in auction numbers in the Inner South, the volume of properties going to auction was picking up again. 

“We have certainly seen a reduction in overall numbers across our auction offerings, however there is still demand for quality family homes,” he said. 

“Over the last few weeks, there have been renewed levels of interest in auction properties, and properties that initially passed in have been selling within only a few weeks of the auction.” 

The Inner South will “continue to remain as a predominantly auction-centric market”, as other areas decide against sales under the hammer amid changing market conditions, Stokes added. 

“Buyers have an expectation that quality offerings will utilise the auction sale method [in the Inner South],” he said. 

“If stock levels continue at their current rate, I anticipate that we will continue to see steady results in the region.

“I am curious to see how the next few months will unfold, as many buyers adjust to the new conditions and re-enter the market with new-found confidence.”