Does the Canberra property market finally have a spring in its step? These agents weigh in.

Spring traditionally marks an upswing in real estate activity, and despite a markedly slower winter, Canberra’s property market is gearing up for a busy season, with agents reporting increased activity and optimism.

“I feel the mood is, we’ve hit the ground running for spring a month early in terms of clients getting ready,” says Louise Harget from Belle Property Canberra.

“We have been frantic over August, and we’ve got really good stock coming to market, which usually doesn’t happen until September.”

Jonny Warren of Jonny Warren Properties has also noticed an increase in activity, coupled with a more positive sentiment.

“We’re seeing large amounts of buyers come out of hibernation,” he says.

“People have just been waiting, but interest rates have stood still, so it’s put a bit more confidence back in the market, which is really good to see.”

The Canberra market has also seen an early surge in interstate buyer interest, which traditionally doesn’t happen until the new year.

“We’ve got a lot of people relocating from interstate to Canberra, and they’ve started that house hunt earlier, because we usually don’t see that activity until late December, early January,” Warren says.

“I’ve had sellers ring up wanting to put their properties on the market at the end of November or early December to try and capture the interstate buyers. I’m having to tell them to bring it forward.”

Established homes the drawcard

Following a slower period, many buyers have been in the market for a long time and are more educated and selective, having spent time researching and attending numerous open homes.

They are also increasingly prioritising established homes, which may often offer more value and inclusions compared to new developments.

“New stock is the flavour of the month, because the build costs are still so high,” Harget says.

“So anything that’s renovated or turnkey ready, clean and fresh and bright, buyers are leaning towards.”

Theo Koutsikamanis from Bastion Property Group agrees.

“When given the option of a brand-new or established home, they’re getting more value and more inclusions in the established properties because of the cost of building,” he says.

Koutsikamanis has noted that houses are slower to move in greenfield developments such as Googong, Whitlam and Denman Prospect, where there is a higher supply of new and near-new stock.

The same goes for off-the-plan properties.

“You can now buy established homes for similar money to off-the-plan, but you can move in straight away,” he says.

“It’s been a long time since I’ve seen a new development more competitive in price than an established one.

“It used to be that off-the-plan was cheaper, but now it’s the other way around.”

Pent-up demand

Most people seem to think that interest rates have stabilised, with a potential drop somewhere on the horizon.

While this has put some confidence in the market, agents warn this could make prices rise, amid an increase in stock listings.

With investors facing high land taxes and rates, many are also choosing to sell, which could further contribute to increased stock levels.

Koutsikamanis says both buyers and sellers may be better off getting in the market sooner rather than later.

“I keep reminding people, if there’s a lot on the market now that they’re competing on, there’s probably going to be double that and a bit more in the next few months,” he says.

Harget echoes these sentiments.

“You look at the Sydney and Brisbane markets, and  they’re going absolutely gangbusters,” she says. “Canberra is always a little slower to follow.

“If I were a buyer, I’d be looking to secure something soon before we have an interest rate decline. Because as soon as something like that happens, I believe the market will kick [into gear].”

Among the uncertainty, all three agents agree there’s more of a positive vibe in the Canberra market than there has been in some time, but all are cautious in their predictions of what’s to come.

“I’m a lot more positive about the market and how clearance rates will be this spring,” Harget says.

“We’ve just had three auctions . ..that sold under the hammer really nicely at reserve prices. It feels like we’re starting to get some momentum, but it’s still very early in the season.”

Warren believes it will be a very busy season ahead in a number of ways.

“We need to be realistic because we’re going to have an influx of the normal springtime homes hitting the market, plus we’ve got a mixture of distressed sellers,” he says. “So that’s going to create an oversupply of homes.

“There is still very good interest, and we’re seeing multiple groups at auction properties.

“So, it’s leading into a very productive and hopefully successful spring, but once the supply hits the market, it will be interesting to see what happens over the next couple of months.”