Multimillion-dollar homes on the rise in Canberra

Just 15 years ago, a multimillion-dollar residential property sale was unheard of in Canberra.

The city had its first $1 million sale in 1988, but it wasn’t until 13 years later that the capital hit the next major milestone.

Canberra’s first sale to top $2 million occurred in 2001 when 18 Mugga Way changed hands for $2,260,000. Its golden mile neighbours at 23 and 14 also broke the $2 million barrier when they sold in early 2002.

Last year there were 34 $2 million-plus sales throughout Canberra.

It’s still not an everyday occurrence. Allhomes data shows just 0.3 per cent of Canberra sales break the $2 million mark.

However, it’s a segment of the market that has strengthened, according to Peter Blackshaw Real Estate Manuka agent Mario Sanfrancesco.

“We’ve certainly seen the development of some high-quality homes and there’s been an increase of those on the Canberra market over the past five years,” Sanfrancesco says.

“The real estate market has become a lot more sophisticated in terms of architecture, design and the quality of construction. That segment of the market has grown substantially.”

Half of 2015’s multimillion-dollar sales occurred during the last three months of the year; a strong spring season provided the ideal climate for the prestige market.

A larger proportion of high-end listings currently on the market could see 2016 deliver similar result.

The bar has already been set high. The most expensive sale of the year was achieved in June when a palatial property at 16 Brown Street in Yarralumla sold for $3.95 million under the hammer.

A further 15 properties sold for more than $2 million so far this year, mirroring 2015’s January to September result of 17 properties.

However, according to Allhomes data scientist Nicola Powell, the average days on the market has dropped dramatically since last year.

Multimillion-dollar homes were on the market for an average of 144 days in 2015, compared with 53 days in 2016.

Ms Powell says this trend is reflected throughout the overall housing market, which has seen supply trail behind demand.

“Supply is declining across all sectors of the housing market and increased auction clearance rates are signs of an active market,” Powell says.

As the $2 million-plus price bracket is still a niche sector, Powell says $1 million-plus sales offer a more accurate insight into the growing prestige market.

“Considering our median is just above $600,000, it’s a big jump to the million-dollar mark,” Powell says.

More than 300 properties sold for more than $1 million between January and September this year.

While the list is dominated by inner-south sales, each Canberra district, as well as Queanbeyan, was represented in the figures.

The bulk of this year’s $2 million-plus sales also occurred in the inner south, with the exception being one sale in each Weston Creek and Woden and a townhouse development opportunity in Belconnen.

Ms Powell says economic conditions have contributed to a rise in high-end sales, with growth most noticeable in the mid to upper segments of the market.

“A large sector of the prestige market is those upsizing or upgrading their property and interest rates have made upsizing more affordable,” Powell says.

Interstate buyers, particularly those from Sydney, have also been drawn to Canberra’s relative affordability.

With Sydney’s median house price hovering around $1 million, Powell says buyers are turning to Canberra to see how much further their money can stretch.

“$1 million in the Sydney market isn’t a lot and Sydney buyers are looking at what they can get for $1 million elsewhere,” Powell says.

“Interstate migration is pretty high in Canberra.”

Standout sales of 2016

• 16 Brown Street, Yarralumla: This lakeside property sold for a staggering $3.95 million at an auction in June. The top sale of the year so far also broke the Yarralumla suburb record and ACT auction record.
• 36 Arthur Circle, Forrest: Nine properties in Forrest have sold for $2 million plus this year. Four of these were on Arthur Circle. Number 36 claimed the suburb’s highest sale of 2016 when it sold for $3.4 million in August.
• 7 La Perouse Street, Griffith: The suburb record was smashed in Griffith this month when 7 La Perouse Street sold for $2,595,000. It’s the first time the suburb record has been broken since 18 Wells Gardens sold for $2,375,000 in 2011.

Colin and Rita Maclachlan, above, were thrilled with the result when their family home in Forrest went under the hammer in May.

The downsizers had lived in the Arthur Circle property for 30 years and made the decision to sell when they found their ideal townhouse in the same suburb.

After a three-week marketing campaign through Peter Blackshaw Manuka, the four-bedroom house sold at auction for $2,094,000.

“We were delighted with the result,” Mr Maclachlan said.

“We were told that we would get $2 million-plus and that’s precisely what we got.”

Cover property

12 Hunter Street, Yarralumla
$3.8 million-plus
Auction on Sunday, November 20 at noon, onsite
Inspectby appointment
Peter Blackshaw Manuka, Mario Sanfrancesco 0412 488 027 

Behind its custom gate and manicured hedging lies a property of a scale and calibre rarely offered to the Canberra market.

Number 12 Hunter Street is a contemporary, yet classic home and every detail throughout has been carefully considered, creating a resort-style, no-expense-spared estate.

Positioned on a 2286 square metre block on a quiet Yarralumla street, the five-bedroom house enjoys a private setting among richly planted landscaped gardens.

A tranquility pond sets the scene for the relaxed ambience that is carried throughout the home.

Double iron doors unfold to reveal generously proportioned formal and informal living spaces.

The formal lounge at the front of the home features an open fireplace, stunning light feature and an Italian mosaic tiled feature wall.

Casual living spills off the beautiful marble kitchen and onto a spectacular alfresco area.

The outdoor kitchen, sparkling swimming pool, cabana and full-sized tennis court provide the perfect setting for grand-scale entertaining.

The segregated main bedroom is a parents’ retreat complete with a sitting room, huge walk-in wardrobe, decadent en suite and private balcony overlooking the front yard.

For the kids, there’s a downstairs rumpus room, which opens onto the pool area.

The extensive list of features also includes a four-car garage and an elegant formal dining room.

The beautifully presented 1930s home had been substantially renovated, while its dress-circle location within walking distance of Manuka was another major drawcard.

Arthur Circle is 2016’s standout street, with four $2 million-plus sales. Two of the sales achieved a price north of $3 million.