Winter chill arrives for Canberra auction market

Canberra home auction market results continue to ease from the strong results recorded over autumn as the seasonal impact of the typically quieter winter selling season emerges

Canberra recorded an auction clearance rate of 55.3 percent on Saturday which was well down on the 63.0 per cent reported over the previous Queens Birthday holiday weekend but again similar to the 56.1 per cent recorded over the same holiday weekend last year.

Auctions volumes were also similar to last year with 53 homes listed to go under the hammer compared to 54 a year ago. Next weekend Canberra will again host 53 auctions.

Gungahlin, Tuggeranong and Weston Creek reported the highest regional clearance rates at the weekend each with a 66.7 per cent result. Next highest was Canberra Central with 50.0 per cent, Belconnen 40.0 per cent and Woden Valley each with a 25 per cent clearance rate.

Notable sales reported at the weekend included a  4  bedroom home at 54 Booroondara  Street Reid sold for  $1,421,000 by McGrath Estate Agents, a  3  bedroom home at 25 Chermside  Street Deakin sold for  $1,390,000 by Belle Property Kingston, another  3  bedroom home at 43 Kent  Street Deakin sold for  $1,280,000 by Peter Blackshaw Real Estate, a  4  bedroom home at 21 Olga Masters  Street Franklin sold by McGrath Estate Agents for  $1,095,000 and a  5  bedroom home at 28 McKail  Crescent Stirling sold by One Agency Scott for  $970,000.

The most expensive property reported sold at auction was a  4  bedroom home at 22 Mueller  Street Yarralumla sold for  $1,490,000 by Luton Properties – Manuka. The most affordable property reported sold at the weekend was a  2  bedroom home at 4 Conner  Close Palmerston sold for  $352,000 by Ray White – Belconnen.

For a list of Canberra auction results click here Canberra auction results June 17

Canberra recorded a median auction price of $791,500 on Saturday which was higher than the $680,000 reported over the previous weekend and 32.4 per cent higher than the $597,750 recorded over the same weekend last year. A total of $14.0m was reported sold at auction in Canberra at the weekend.

The Canberra rental market generally remains a tenant’s nightmare with rents skyrocketing reflecting an overall chronic shortage of available accommodation.

Latest Domain data reports that over the three months ending May the median weekly asking rent for houses in Canberra increased sharply by 6.4 per cent to $500 per week compared to the same period last year.

Canberra unit rents have also surged over the past year despite significant recent increases in new apartment development. The May quarter median weekly asking unit rent at $420 was 5.0 per cent higher than that recorded over autumn last year..

Sharp increases in Canberra rents reflect a shortage of available homes for lease as indicated by the latest monthly rental vacancy rates.

Although vacancy rates eased slightly over May, this reflected the seasonal impact on listings of the lengthy holiday distractions of the previous month. Canberra vacancy rates however remain amongst the lowest of all the capitals at 0.9 per cent for houses, 1.7 per cent for units for a total homes vacancy rate of 1.2 per cent.

Rents can be expected to continue to increase in Canberra driven by increased migration, a strong local economy, relatively low numbers of first home buyers and an underlying shortage of rental accommodation. Actions by policymakers and banks to restrict activity by residential investors will only add to the current imbalances between rental supply and demand with even higher rents the logical outcome.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket.