Nicola Powell: Belconnen leads Canberra's auction market

Auction market performance can give a true insight into the current state of the market. Two key components are standout indicators of confident market sentiment.

A rising number of homes are being sold by auction and clearance rates remain strong. Robust auction activity highlights the market is brimming with certainty providing solid housing conditions. Under this setting it is not a surprise that excelled house price growth remains.

It appears that vendors are taking advantage of the fraught competition between buyers. One consistent theme, a greater number of homes are being sold by auction.

The first seven months of the year saw 2057 properties (including blocks of land) listed for auction across Canberra and Queanbeyan. All districts experienced an increase in auction listings. The remediated Mr Fluffy blocks account for a proportion of increased activity.

Vendors in Belconnen listed 462 properties to be auctioned over the first seven months of the year, up 22.2 per cent compared with the same period the year prior.

Belconnen had the highest number of listed auctions. Woden Valley had the biggest jump in vendors choosing to sell by auction, up 56.8 per cent annually to 287 homes to be sold under the hammer.

A total of 282 properties in Gungahlin (annually up 25.9 per cent), 212 in the Inner North (annually up 17.8 per cent) and 175 in the Inner South (annually up 21.5 per cent) were listed for auction during the first seven months of the year.

Auction activity grew annually 23.7 per cent in Weston Creek with 219 vendors opting to sell under the hammer. Tuggeranong experienced the smallest increase at 1.8 per cent to 282 homes listed for auction. Queanbeyan had the least auction listings, however did rise annually by 17.9 per cent to 138.

• Related: Auction numbers surge in Canberra
• Related: Auction market defies the winter blues
• Related: Auction watch – Canberra clearance rates rise

Auction market performance varies wildly depending upon the district. The intense competition between buyers is echoed by constant high clearance rates achieved in particular districts.

Over July, Belconnen recorded an 81 per cent clearance rate. Auction performance was not far behind in Tuggeranong with a clearance rate of 74 per cent. Clearance rates were also particularly high in Woden Valley at 73 per cent and Gungahlin at 72 per cent.

The Inner North and Inner South recorded clearance rates of 68 per cent and 63 per cent respectively. Weston Creek and Queanbeyan had the regions lowest July clearance rates at 36 per cent and 31 per cent.

Winter months are traditionally a quieter time of market activity but this has not deterred the fierce competition between prospective buyers at auction. It is the persistent competition that keeps clearance rates in the realm of a sellers market in certain districts.

If the buoyancy experienced throughout July persists through August, spring is set to start on a high.

Nicola Powell is a property expert for Allhomes. Twitter: @DocNicolaPowell