Clearance rates drop in Canberra's north but surge in the south

Canberra’s south-side regions outperformed the north-side in the auction market for the month of June, according to new Domain data.

The data shows clearance rates have dropped year-on-year in all north-side regions, but have increased in all south-side regions, besides the Inner South.

Tuggeranong experienced the biggest increase, up from 50 per cent in June 2017, to 65 per cent.

Peter Blackshaw Real Estate Tuggeranong principal Robert Peaker said the region has been undervalued.

“In Tuggeranong the average block size of 700 to 800 square metres is significantly larger than the newer areas,” he said.

“Bigger blocks are more appealing to families.”

Peaker attributed Tuggeranong’s auction performance to its value.

“Over the last 12 to 18 months, the Tuggeranong market has accelerated and perhaps for two reasons – people see the value and they have been priced out of other areas,” he said.

“New developments and amenities have also been built in Tuggeranong.”

• Related: Canberra’s clearance rate records a strong result for May 
• Related: Canberra’s clearance rate strong as Sydney and Melbourne drop 
• Related: Auction clearance rates down across Canberra 

Weston Creek’s auction market also improved, with a clearance rate of 67 per cent, up from 57 per cent.

Belle Property Kingston agent Duncan Macdonald said inspection numbers during auction campaigns in Weston Creek properties have been “massive”.

“Our numbers through Weston Creek properties have been exceeding other areas such as Woden and the Inner South,” he said.

Macdonald said auctions are becoming more prevalent in the region.

“We’re pretty much taking any property in Weston Creek to auction,” he said.

“I don’t think I have taken anything on in Weston Creek over the past six months that hasn’t gone to auction first.”

In the other south side regions, Woden’s clearance rate of 63 per cent is up from 59 per cent and Queanbeyan recorded a clearance rate of 71 per cent.*

However, the Inner South’s rate declined from 59 per cent to 46 per cent.

The Inner North had the biggest decrease, down year-on-year from 70 per cent to 50 per cent.

Gungahlin’s clearance rate of 45 per cent, a decline of 55 per cent, was the lowest of all regions.

Belconnen recorded the highest clearance rate of 75 per cent but this was down from 80 per cent.

The total sales supply in Canberra over June for houses was 1220 and 1180 for units.

Weston Creek experienced the biggest year-on-year decrease of 22.7 per cent in new supply of houses. The Inner North had the biggest increase of 21.6 per cent.

All region’s new unit supply increased, besides Molonglo Valley. The Inner North had the highest growth at 39 per cent.

In the rental market, supply continued to decline. The total supply of houses was down year-on-year by 16.6 per cent. The Inner North’s supply experienced the greatest drop of 20 per cent.

The total supply of rental units was down across Canberra by 24.7 per cent with Weston Creek dropping 32.2 per cent.

Latest SQM Research data shows Canberra’s rental vacancy rate currently sits at 0.8 per cent.

* Data on Queanbeyan’s clearance rate for June 2017 was not available.