Canberra’s first Super Saturday of the year sees clearance rates soften
JESSICA TAULAGA - EDITORIAL PRODUCER
MAR 02, 2022
Canberra buyers are in no rush to compete for properties, according to agents, as the capital’s first “Super Saturday” of the year saw auction clearance rates soften.
Revised Domain data showed that, of the 112 reported auction results, 78 homes were sold at auction, seven were withdrawn and 21 properties were passed in. Canberra had a clearance rate of 70 per cent.
Domain chief of research and economics Nicola Powell said clearance rates were down across most cities, with the exception of Sydney and Melbourne.
“This indicates a shift towards a buyers’ market with reduced competition allowing potential buyers more choice,” she said.
“Canberra fell again this week and remains at its lowest rate since December 2021.
As the auction market moves into autumn, high auction volumes and lower clearance rates should see buying conditions improve.” In the last year, Canberra recorded a clearance rate of 80 per cent or more every month.
For the month of February, the capital had an overall clearance rate of 80.4 per cent, from 521 auctions scheduled over the month. February had the highest number of auctions for Canberra since Domain records began.
One of the 78 properties that changed hands was the four-bedroom house at 15 Twamley Crescent, Chisolm, which was sold for $990,000 on Saturday by Anthony McCormack of Hayman Partners. Mr McCormack said the increased number of new listings and properties going to auction had seen two types of buyers emerge.
“We have ‘motivated buyers’ who have missed out on a number of properties and are just ready to pay a little bit more to get a home,” he said. “And then we have a new set of buyers who are not willing to splurge on a property. “We’re starting to see a shift in the market; it’s a far more balanced market now than six months ago.
Buyers are starting to claw back a little bit of ground and we’re not seeing the runaway prices we saw last year.
”This has put many sellers in a pickle, as they hope to seal deals before interest rates rise, the federal election goes ahead or property price growth eases. “Some sellers have realised the growth and I guess they want to see how much they can squeeze out of it,” Mr McCormack said.“They are trying to capture the market from last year and a little bit more but what we’re seeing now is far different than what we saw six months ago”
Greg Amos of Irwin Property, who sold 4 Challinor Crescent, Florey, on Saturday for $1,345,000, said despite his successful sale, the softening clearance rate was a result of “the ball being in the buyer’s park now”.
“A few months ago, buyers were purchasing property out of the fear of missing out, but now that attitude has changed,” he said. “Unless they really love the property and they have some connection to it, they’re willing to forego one auction and go to another one … and we’ve heard buyers tell us this.”
Mr Amos added that, while the sentiment from buyers had somewhat changed, the method of sale by auction would still be the preferred selling strategy. “Particularly as the market is volatile and unpredictable, auctions are still the most transparent way,” he said.
“For instance, at the Florey auction, I had anticipated high $1.15 million but once it got under auction conditions, that competitive nature pushed it up and the market ultimately determined that final price.”
Domain data anticipates yet another busy weekend of auctions for Canberra, albeit not a Super Saturday, with 84 properties scheduled to go under the hammer.
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