Competitive Canberra market fuels growing popularity of auctions

In 2016 more than one third of Canberra houses taken to market were sold via the auction method.

An uptake in auctions has steadily increased since 2010, when 23.7 per cent of houses were sold under the hammer.

According to Allhomes data, auctions rates are highest in districts where there is a shortage of stock. A competitive market makes the auction process more appealing, but agents say it’s not the only reason to sell your home under the hammer.

According to Belle Property Kingston principal Dan McAlpine, the Canberra market is now more educated about auctions. “That’s thanks to the popularity of the process in other major capital cities,” McAlpine says. “Buyers and sellers are now more aware and more comfortable with the process.”

McAlpine says an auction campaign typically halves the number of days the home sits on the market. “This means less open homes, less strangers traipsing through your home and a quicker process.”

Buyers also benefit from this reduced timeframe, “if they miss this one they can go out next weekend and shop for another property”, McAlpine says.

The transparency of the process can provide comfort for buyers when they make that big purchase.

“For the most part, the buyers are paying market value,” McAlpine says. “Someone is not dictating a price to them, they’re dictating a price to the market.”

Luton Properties sales manager and auctioneer Craig Sheargold says a further advantage for buyers in the ACT is that vendors must provide a complete contract with a building and pest report.

This means buyers don’t have to organise a building inspection for each home they hope to bid on. This is not the case in NSW.

“The system in Canberra suits auctions because it doesn’t cost money to come and bid at auction,” Sheargold says.

But when is a property suitable for an auction sale?

Sheargold says it’s a personal decision and while vendors should seek agent advice, they should not feel pressured. “They need to have a discussion with their agent about all the options that are available to them and look at the pros and cons of all the other different methods of sale.”

“Some agents are happy to push one method over another because it’s something they’re more comfortable with, but I think it’s important for a seller to pick the one they’re most comfortable with.”

McAlpine suggests sellers do their homework.

“Be educated, go to auctions and see how particularly strategies or bidders impact an auction and then choose your strategy,” McAlpine says. “Be acutely aware of your surrounds and what’s likely to occur. Get there early, register early, make sure you have finances prepared – give it every chance.”

Once the domain of high-end properties, auctions have become popular across all price brackets.

Peter Blackshaw Manuka agent and auctioneers Mario Sanfrancesco says Canberra has quickly evolved into a sophisticated auction market, spurred by the recent strong results achieved throughout the capital.

“I think we’re beginning to catch up with other major cities, such as Sydney and Melbourne,” Sanfrancesco said. “Higher auction sales have really demonstrated that that is the case.

“The effort that our local auctioneers are investing around their discipline is on a whole new level now.”

Buying at auction?

• Set a limit: … and stick to it. Belle Property Kingston’s Dan McAlpine suggests choosing a unique figure. “Don’t make it $500,000, make it $503,500.” It’s easier to stick to this way as there’s less chance your absolute limit will be topped by $1000.
• Choose your strategy: “A strategy is pretty critical,” McAlpine says. “If you bid at the start, bid loudly and stand front and centre; that can have an impact on underbidders.”
• Have confidence: We’ve all seen it – eight registered parties, but only two make a bid. Don’t think you’ll win? Well you won’t if you don’t raise that paddle!



Couple opt for auction

Tenweer Ahmad, above, and wife Faiza decided an auction was right for them after discussing the various sales methods with their agent.

Tenweer says Luton Properties Tuggeranong agent Michael Martin offered his advice but left the final decision up to the couple.

“He gave us options, he was honest and he listened,” Tenweer says.

Faiza says the four-bedroom house has been a lovely family home for the couple and their three children, Muhammad, 3, Mahrosh, 2, and six-month-old Aminah.

She says the big backyard and open-plan design of the home has been perfect for keeping an eye on the kids.

The property has a peaceful position, across from reserve, yet within walking distance of the shops and Bonner Primary School.

Number 39 Djerrkura Street, Bonner, will be auctioned on February 18. Inspect: Saturday, noon-1pm. Phone Luton Properties Tuggeranong agent Michael Martin on 0411 748 805.

Cover property

3 Key Street, Campbell
Mid $1 millions
4 bedrooms, 2 bathrooms, 1 parking space
Auction on Saturday, February 4 at 11am, onsite
Inspect on Saturday, from 10.30-11.15am
Belle Property Kingston, Louise Harget and Dan McAlpine 0412 99 894 or 0401 005 282

This four-bedroom house in Campbell has stepped out of the pages of a story book and onto the foothills of Mount Ainslie.

Set against a bushland backdrop, the home is nestled among established gardens and captures panoramic vistas towards Parliament House.

It has been stylishly updated, yet it retains its original charm. The two-storey solid brick home features four generous bedrooms, renovated bathrooms and a country-inspired kitchen.

The kitchen includes painted timber cabinetry, stone bench tops, Ilve appliances, feature lighting and a seamless glass splashback.

The lounge room has an open fireplace, while the sun-filled family room opens onto an elevated rear terrace.

 There is a single garage with dual remote doors to the front and back, as well as ample off-street parking.

Other features include ducted heating and cooling, Rinnai gas hot water, a large laundry with lots of storage space and a four-zone watering system.

The home is set in a peaceful location just minutes from the city and within easy reach of the Parliamentary Triangle.