Strong spring forecast for Canberra property market following a standout winter

The Canberra property market has entered the busy spring season off the back of one of the strongest winters on record.

In contrast to what is typically a period of hibernation for the property market, this year’s winter saw more auctions than the 2016 season, a rise in auction clearance rates and higher asking prices for private treaty sales.

Domain chief economist Andrew Wilson said spring was likely to bring more good news for sellers.

Canberra recorded a 69.2 per cent auction clearance rate in winter – the highest winter clearance rate since 2009 and the fourth-highest quarter on record.

“We also had a 12.1 per cent increase in the number of auctions conducted,” Dr Wilson said.

“The strong clearance rate came from a higher number of auctions, which is another sign of a strong market.”

Peter Blackshaw Real Estate Belconnen principal Peter Walker said more buyers and sellers were now comfortable with auctions, leading to an uptake in the sales method.

“It’s not a big mystery anymore,” Mr Walker said.

“They’re more trusting of auctions and it’s not as dramatic as it was previously.”

• Related: Quieter start to Canberra spring season
• Related: High clearance rates at Canberra auctions
• Related: Auction watch – high-end inner south sales

Canberra recorded a record-high winter median auction price of $687,500, which was 4.2 per cent higher than winter 2016.

Asking prices for private treaty houses rose 1.7 per cent over the quarter to $610,000 – a 13 per cent year-on-year increase and another record.

Unit asking prices rose 2.5 per cent over the quarter and 7.4 per cent over the year to $419,000.

A regional record for Gungahlin, set when 15 Quinane Avenue in Forde sold for $2,035,000 via McGrath Gungahlin, was among the highlights of the season.

A Forrest mansion at 5 Moresby Street commanded the highest price tag, selling for $4.22 million at auction through Peter Blackshaw Manuka.

Luton Properties sales manager Craig Sheargold said auction clearance rates were at a “company high”.

“During August we took 53 properties to auction and sold 48 prior to or on auction day,” Mr Sheargold said.

“Exhibition numbers were very strong, particularly in the $600,000 to $800,000 price range.

“We’ve also experienced increased demand in the $1 million-plus market, primarily due to the low interest rates and homeowners looking to upgrade their primary residence.”

Dr Wilson said Canberra’s economic conditions were strong, but he expected the continued rise in house prices would eventually “level out”.

“You’ve got to remember that at one stage the Canberra median house price was on track to match the Sydney median house price in 2011,” Dr Wilson said.

“It’s in a little bit of a catch-up mode, I expect that it will start to level out next year. I think we’re seeing that in Sydney now.”