Large blocks attracting buyer interest in Red Hill

Large homes, and even bigger blocks, are high on the list for Red Hill buyers. Big blocks are a feature  of the suburb and these large parcels of land also command high prices. Many of the blocks across Red Hill have an unimproved value of about the million-dollar mark. Based on Allhomes’ sales data over the past eight months, the average unimproved value of a single residential block sat just under $770,000. The average block size was almost a quarter acre or about 1000 square metres. This is significantly more than the average Canberra block size of 736 square metres. 

Red Hill did not escape the slowing market seen across Canberra. Buyer activity eased by 10.3 per cent to 26 properties sold  in the suburb. Most of the transactions were detached homes contributing eight out of every  10 sales. Single residential blocks attract buyers to the area but the number of townhouses and units is changing the face of Red Hill.

Historically low interest rates have activated the mid to upper housing market sectors, attracting buyers looking to upsize but also empty nesters looking to downsize. The median house price in Red Hill grew by 2.9 per cent to reach a median sale price of $1,207,000 based on sales over the first eight months of the year.

Despite falling demand, prices are rising, indicating buyers are still actively looking. The number of properties sold under the hammer has grown. Over the year to date, 61.5 per cent of sales sold at auction against 37.9 per cent of properties sold at auction last year. Fierce competition between buyers at auction has  seen more properties selling under the hammer. This has also shaved almost two weeks off the rate to sale, with the average property spending 47 days on the market over the year to date.

Rising prices, a falling rate to sale, and a higher proportion sold at auction, indicate one thing – a poor supply stream. The supply level has no doubt played a r role in driving up prices and competition between buyers. Over the first eight months of the year, 38 properties were listed for sale on allhomes.com.au  – a decline of 13.6 per cent compared  with the same period the year before. If the supply continues to dwindle it will lead to higher house prices.

Nicola Powell is a property expert for Allhomes. Twitter: @DocNicolaPowell. The MIX106.3 Real Estate Show, Saturdays 9am-10am.