Canberra housing market gathers momentum following rate cuts

Canberra’s property market is showing signs of renewed confidence, with Domain’s latest Market Insights revealing several standout statistics for May.

New listings surged 31.2 per cent month-on-month, the highest on record for May, with house listings jumping an impressive 50.4 per cent. New listings for houses have increased 5 per cent year-on-year.

The total supply also reached record May levels, suggesting that vendors are becoming more optimistic. Auction activity has followed suit, with May recording the third-highest auction volumes ever and a clearance rate of 59.9 per cent, the highest in three months.

Luton Properties’ Richard Luton said clearance rates were improving and buyers were regaining confidence, particularly for high-quality properties.

“We recently sold a palatial five-bedroom residence at 67 Mackenzie Street, Hackett, for a record $3.1 million prior to auction. That’s a significant result for the area,” he said.

“While buyer numbers are still down on previous years, we’re seeing more people through open homes, and strong prices are still being achieved. It’s business as usual post-election, with the market responding positively to stabilising conditions.”

According to the report, while houses are taking longer to sell, with days on market rising for the second month, the figure remains at its lowest for this time of year since 2023.

Unit sales are moving slightly faster, with days on market dropping to a four-month low.

Price discounting has increased but remains historically moderate for houses, while discounting for units is at its highest May level since 2016.

Tight rental conditions are also persisting, with Canberra’s vacancy rate dropping to 1.1 per cent, the lowest since October 2022.