Looming federal election dampens Canberra's clearance rates

Potential buyers hoping to purchase property in the ACT in March had an abundance of homes to choose from, but weren’t keen to purchase at auction, according to Domain data.

Auctions in Canberra had the lowest clearance rate – 53.8 per cent – of any capital city. This is in conjunction with a five-month high in the supply of homes on the market throughout March, with new listings and total supply at the highest on record.

Luke Lindley of AM Property Agency said it’s not all doom and gloom: a looming election and typical market fluctuations are behind the dip.

“What we’re finding at the moment within the market is that good quality, separate-title homes are still transacting and selling at auction,” he said.

“We’re seeing more buyers through open homes, which is a positive sign. But Canberra has a lot of public servants who may be considering job security as the result of an election being called.”

A downward trend in interest rates is also creating movement. Lindley believes vendors needn’t worry yet, despite an increase in days on market in Canberra for the third month in a row.

“There is always a reason to transact property,” he said. “People are still needing to buy or sell homes, and they just need to be focused on the market that they’re currently in.”

Across the ACT, 436 homes went to auction in March, with Tuggeranong (66.1 per cent) and Belconnen (63.2 per cent) boasting the highest clearance rates.

Domain data also shows Canberra’s rental vacancy rate continues to tighten, sitting at 1.2 per cent – the lowest rate for March since 2022.