Year starts slowly for Canberra real estate but activity is building up

If you are like most of the population of Canberra and have been following the real estate market closely over the past several years, you will have seen some phenomenal changes.

It is a market that has been incredibly resilient, in the main, holding itself very well through the global financial crisis and gathering fantastic momentum in 2010, when many other onshore and offshore markets were still in shock.

As a long-term resident of Ainslie, I have seen it as a great litmus test for the rest of the Canberra market and the past few year are a testament to this.

In 2014, there were only two sales in excess of $1 million, but with the advent of the Mr Fluffy buyer and the extra demand (and subsequent lack of supply) that this situation created, 2015 saw 24 sales over the $1 million mark in this suburb.

This year has started more slowly, with only two sales so far in the first quarter over the $1 million mark. Signs continue to be good, with my agency selling a two-bedroom duplex at auction on Wednesday night for $778,000 with 11 registered bidders creating spirited bidding.

With interest rates remaining low and buyer activity high, it will be very interesting to see what impact, if any, the forthcoming budget and election have.

Stephen Bunday is with LJ Hooker Dickson