Selling season: Canberra house prices set to climb as spring boom begins

Temperatures might be on the rise with the beginning of spring, but the property market is even warmer.

Domain chief economist Doctor Andrew Wilson says Canberra is definitely a seller’s market.

“It has performed strongly throughout winter with auction clearance rates averaging around 90 per cent,” he says. “Ongoing demand and low interest rates will continue to put upwards pressure on prices – I think we’re set for a really strong season.”

Wilson says Canberra home sale asking prices are up 13 per cent over the last 12 months, an indicator of that relentless demand.

Apartment prices, however, remain flat with more product in the construction pipeline, but Wilson says the upside is there is no shortage of buyers.

“It’s a segment popular with first home buyers, downsizers and investors and they are continuing to show strong appetite for this form of living,” he says.

Also buoyed by market performance is the head of Luton Properties, Richard Luton, who agrees there will be upwards pressure on prices in the lead-up to the end of the year.

“Our winter auction clearance rates were the best I’ve seen in 25 years,” he says. “We sold 42 properties in 22 days with clearance rates between 90 and 100 per cent.”

Luton says demand has been uniform across the ACT, across both homes and units, and all buyers – upsizers, downsizers, first home buyers and investors.

He believes this activity could lead to a lack of stock in the early weeks of spring and that could see prices rise further.

“I’m sensing there could be a lag between the winter clearances and new stock coming to market,” Luton says. “There are still plenty of active buyers and those dynamics are simply going to increase the competition to purchase.”

The principal of LJ Hooker Manuka, Stephen Thompson, says he’s never seen the market as competitive as it was through the winter.

“Some commentators claim the market is booming,” he says. “My view is that it’s actually playing catch-up when you compare it with Sydney and Melbourne.

“There’s been high auction clearance rates, but what’s driving this is the lack of quality stock, particularly in the detached home segment.

“We’re also seeing strong demand for dual occupancies and for the quality apartment offerings in Kingston and Griffith.”

Thompson says Narrabundah is a property buying favourite at the moment with an entry price of about $1 million for an unrenovated home.

Head of the Independent Property Group John Runko also highlighted undersupply in the detached home segment and says this will keep upwards pressure on prices.

He apportions part of the reason to the Mr Fluffy blocks.

“Their acquisition took more than 1000 blocks out of the market and we’re now only just getting to the point where they are being developed and will come back onto the market at some point,” Runko says.

“I could see that it might take two to three years to right the supply-demand equation.”

He says the apartment sector remains attractive to investors with low vacancy rates and high yields, but he thinks prices will remain relatively flat with more product in the pipeline.

“Canberra is still attractive to Sydney and Melbourne investors who have been priced out of their markets,” Runko says.

SPRING IS IN THE AIR

SUPPLY

Great time to sell. It’s a seller’s heaven with detached homes in demand and prices on the rise.

INVEST

Apartment prices likely remain flat, but low vacancy and interest rates keep ticking the investment boxes.

RESEARCH

Home prices are still playing catch-up – buyers should study median prices for suburbs with even greater upside.

Case study

Tania Kelly and Michael Kelly. Photo: Dion Georgopoulos Photo: Dion Georgopoulos

The appearance of spring cherry blossom put the final piece into place in Tania and Michael Kelly’s plan to sell their Torrens home (see below) ahead of a relocation to the south coast.

“Our weeping cherry is just coming into bloom and that coincided nicely with our timing in putting the house on the market,” Tania says.

The Kellys spotted the original three-bedroom, two-bathroom home in late 2007 and were attracted by its elevated position backing on to the Mount Taylor walking trails.

“That connection with nature was lovely and we felt the home had the potential to be turned into something special,” Tania says.

An extensive renovation realised a five-bedroom, three-bathroom home with extensive outdoor entertaining areas and a solar and gas heated pool.

“It’s been a wonderful home; light and spacious and enjoyed by all the grandchildren, particularly the pool,” Tania says.

“And it’s a lovely neighbourhood, very quiet and close to the shops, public transport, schools and hospital – it’s a great location.”

Cover property

77 Gouger Street, Torrens. Photo: Supplied

Space, light and a strong connection with outdoor living spaces are highlights of this elevated home in one of the Woden Valley’s premier streets.

This five-bedroom home sits on a generous 1711 square metre block and backs onto walking trails to Mount Taylor.

The spacious home combines the simplicity of single-level living with a superb renovation to the highest standards of contemporary living.

North-easterly orientation is enhanced by floor-to-ceiling windows that pour light into an open-plan living and dining area. 

One of the minor bathrooms has its own en suite, while the other two share a bathroom. The main bedroom has a walk-in robe and deluxe en suite and the room opens onto a deck. The fifth bedroom could also be used as a home office.

Outdoor entertaining is a focal point of the home, with a large covered alfresco area with fireplace and a resort-style pool with solar and gas heating.

There’s a double garage and side access to a rear shed that can be used for a boat, more parking or storage.

77 Gouger Street, Torrens. Photo: Supplied

TORRENS

77 GOUGER STREET

PRICE GUIDE: $1.25 million-plus EER: 1.5

AGENT: Peter Blackshaw Woden and Weston Creek, Michael Pead 0431 937 684

AUCTION: 12.30pm, September 16,  on site

INSPECT: Contact agent

SEE MORE: goo.gl/Gg7TUD