Record highs expected to continue in Canberra's heated suburbs

Home sale records tumbled like nine pins during 2017 and local agents believe that scenario will continue this year across Canberra’s heated suburbs.

One of the first records to fall was in Isaacs last March which broke its suburb record by close to $1 million. Duffy tipped over the $2 million mark in September, closely followed by a new record in Franklin at $1.55 million. The inner south ratcheted through the records with new marks in Griffith and Forrest.

The final sale price of Westridge House in Yarralumla in December has not been disclosed, but it’s reliably believed to have exceeded $6 million.

Ryan Broadhurst of Belle Property Kingston says in the absence of a fundamental impact – like an increase in interest rates – he believes conditions are set for more records to fall this year.

“The big drivers are a tightened supply of detached family homes and strong competition between buyers,” he says.

“There’s a definite fear of missing out that’s causing buyers to keep upward pressure on prices – and that leads to new records.”

Nick Slater of McGrath Gungahlin says buyers are looking at many of the established suburbs with new eyes.

“There’s a lot of value to be unlocked wherever you have big blocks,” he says.

“New homes are now being built on much smaller block sizes – that doesn’t necessarily suit all buyers and that drives them towards the big block suburbs.”

Slater says these buyers are willing to revamp kitchens and bathrooms to refresh older homes.

WHAT’S IN A RECORD?

Supply.  Detached family homes on good-sized blocks in established suburbs continue to hit the hot buttons of buyers seeking four bedrooms, two bathrooms, multiple living areas and great outdoor spaces.

Demand.  People transferring into new work positions in Canberra and lifestyle relocators from Sydney and Melbourne are raising the stakes. A fear of missing out is leading to increased bids at auction.

X-factor.  Some properties set records because they are highly desirable “one-offs”. Their X-factor is likely a combination of location, architectural style and the quality of fixtures and fitting.