Canberra's February auction results reflect buyer-seller confidence

Canberra’s auction market is off to a strong start with more listings and a steady clearance rate reflecting buyer and seller confidence, new data shows.

The nation’s capital recorded a 66.9 per cent clearance rate in February, slightly down on the 69.1 per cent rate recorded a year earlier but well above December’s 53.4 per cent rate, according to the latest Domain statistics.

The big jump was in the average number of properties listed for auction each week and the growing median auction price.

About 68 properties were listed each week in February, well over the average 41 listings recorded 12 months earlier.

The median auction sale price also jumped from $638,000 in February, 2015, to $680,000 last month.

Domain chief economist Andrew Wilson said the positive clearance rate and extra listings reflected increased confidence in the Canberra market.

“For Canberra, any result over 60 per cent is a positive for sellers. The market’s held its numbers over the year in terms of clearance rates,” he said.

“There’s been such a big rise in listing numbers and I think that’s an indication of the market, of confidence of sellers in the market. That’s a significant statistic … [and] a big difference from a year ago.

“I think sellers are more confident of getting a buyer in the Canberra market and also getting a good result.”

Clearance rates were strongest in Weston Creek in February with 79.2 per cent of properties selling under the hammer.

Belconnen and the Woden Valley also performed well with clearance rates of 71.9 per cent and 71.4 per cent respectively.

Nearly 70 per cent of properties in central Canberra sold under the hammer last month (69.8 per cent).

Gungahlin’s clearance rate was 62.5 per cent, ahead of Tuggeranong with 50 per cent.

Dr Wilson said the ACT market had “unequivocally strengthened”, with 2016’s strong start set to continue with more sellers expected over autumn.

“Canberra started the year off extremely positive … I think more sellers will be encouraged into the market up until Easter,” he said.

“A tough budget would impact the Canberra budget, as it has, but I’m not quite sure it will impact as much as it has previously because of the solid year and because confidence has clearly strengthened over the past year.”

Real Estate Institute of the ACT president Frank Pompeani agreed there had been strong buyer interest in the auction market this year.

“The marketplace has been considerably more active in the first six active weeks of this year than it was in the last quarter of last year,” he said.

Mr Pompeani said auction results had been strong, with most of the properties passing in under the hammer attracting offers within seven days.

Meanwhile, interest rates and more affordable housing in Canberra compared with Sydney and Melbourne had also given the market a boost.