Nicola Powell: Surprising number of Canberrans can afford a million-dollar home

The number of homes sold for more than a million dollars in Canberra is soaring.

There were 308 properties (excluding land sales) that achieved above $1 million in the six months to the end of May. This represents an astounding 53.2 per cent increase compared to the same period the year prior, with buyers purchasing an additional 107 million-dollar homes.

To put this demand in context, overall market activity has been buoyant with a 9.3 per cent demand increase to 3476 properties sold over the six months to the end of May, an additional 296 properties sold. Prestige sales are accounting for a higher proportion of the overall Canberra market, 8.9 per cent of the total sales in the six months to the end of May compared to 6.3 per cent over the same period the year prior. Properties cracking the million-dollar price tag are becoming a more frequent occurrence.

Elite sales are not restricted to the detached housing market. There were 30 townhouse and unit transactions attracting a seven-digit figure over the six months to the end of May. This was a significant jump from the 17 million-dollar townhouse and unit sales that occurred over the same period the year prior.

Buyers are making quick decisions when it comes to purchasing a million-dollar home. Elite properties had a rate to sale of 55 days, compared to an average 63 days on market for all price points.

The volume of sales cracking $2 million dollars has doubled. Over the six months to the end of May 28 homes sold for more than $2 million, compared to 14 homes during the same period last year.

Buyers in the market for a million-dollar home are flocking to Canberra’s prestigious inner regions.

The largest volume of $1 million-plus sales can be found in the established districts of the inner south and inner north, with 114 and 80 properties sold respectively, accounting for 63 per cent of the total volume of million-dollar transactions. Large blocks, with many commanding an unimproved land value above $1 million, earmark the established districts of the inner north and inner south.

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Elite sales may have once been confined to the territory’s older suburbs but the million-dollar club now spreads across every Canberra district. Woden Valley had the third highest volume with 47 homes achieving seven figures. Gungahlin was next with 31 million-dollar sales, closely followed by 18 transactions in Belconnen.

Mortgage rates have helped to ignite the upper end of the housing market. As banks have already started to hike rates on certain loans, million-dollar buyers are locking in low interest rates.

Nicola Powell is an expert for Allhomes. Twitter: @DocNicolaPowell