12 Hunter Street, Yarralumla. Photo: Supplied If 2015 was the year the Canberra market played catch-up, 2016 was the year it surged ahead.
Industry experts are touting 2016 as one of the best years on record and they have the auction clearance rates, suburb records and speedy sales results to back it up.
Real Estate Institute ACT president Frank Pompeani says a number of aligning factors have created a perfect storm for sellers.
“We’ve come out of quite a subdued marketplace in previous years,” Pompeani says. “There’s strong yields for investors, our population is increasing by around 5000 per annum and the interest rates are the lowest on record.”
Luton Properties director Richard Luton says the market is the strongest he has seen since he started in 1993.
“The auction clearance rates are the highest I’ve ever seen, there’s a huge shortage of stock left over from the Mr Fluffy undersupply, which has flowed on from last year, and the days on the market are the shortest I’ve ever seen,” Luton says.
“Canberra has come of age and people realise it’s a good market to buy in.”
Peter Blackshaw Woden and Weston Creek agent Michael Pead says 2016 has been a solid year of growth and activity.
“Despite a pretty slow winter/early spring with properties listed to the market, the marketplace certainly has become buoyant in terms of properties listed leading into the end of the year,” Pead says.
“Demand for detached family homes and single-level downsizers remains strong and will continue to do so entering into the new year.”
According to Domain Group data, the median house price in Canberra jumped 4.5 per cent to $643,000.
Allhomes data scientist Nicola Powell says the auction sales method has also become more popular; 35.1 per cent of detached houses sold under the hammer in 2016, compared to 29.2 per cent in 2015.
Fierce competition has seen suburb records smashed across the territory. Powell says one third of Canberra’s suburbs achieved their highest sale on record in 2016.
“There’s a lack of stock for detached houses and that imbalance that has driven up house prices,” Powell says.
Rising house prices have also fuelled the unit market, according to Powell.
Data released this week by the Housing Industry Association showed that the number of new apartments and townhouses under construction in the ACT outweighed the building of standalone houses almost four to one.
HIA ACT executive director Greg Weller said the territory was in first place for multi-unit dwelling approvals, but dead last for detached dwelling starts.
Weller said this represents “a real disconnect from the fact that sales of established homes are performing so well”.
“Clearly consumers in the ACT want to buy detached homes, but there is just not the supply of land at a reasonable price to allow them to do so,” he says.
An influx of new multi-unit developments sparked discussions on oversupply, however Geocon managing director Nick Georgalis says the sales figures tell a different story.
Geocon had a number of large-scale developments on the market in 2016, including the 27-storey Wayfarer tower in Belconnen, the resort-style Southport development in Greenway and Gungahlin’s tallest buildings, Infinity Towers.
“We’ve sold 700 apartments this year so it is a boom that’s following a trend from the rest of Australia,” Georgalis says.
What sets Canberra apart is the price of entry-level units, according to Georgalis.
“In projects such as Wayfarer, Southport and Infinity, one-bedroom apartments started around $250,000, which makes homeownership accessible to almost anyone,” Georgalis said.
“Two-bedroom apartments, situated 15 minutes from the city centre, are around $360,000. Sydney and Melbourne can’t compete with that sort of affordability.”
The biggest challenge for first home buyers remains saving for a deposit amid rising rental costs.
Powell says rental prices jumped $30 this year to a median of $430 a week.
Top sales of 2016
- 12 Hunter Street, Yarralumla – The top sale of the year, and the ACT’s third highest house sale on record was achieved in November when this palatial property sold for a staggering $5,475,000 under the hammer. It broke Canberra’s auction record and the Yarralumla suburb record.
- 16 Brown Street, Yarralumla – This property held the Canberra auction record and Yarralumla suburb record for five months before the sale of 12 Hunter Street. However, the $3.95 million sale remains the second biggest of the year.
- 36 Arthur Circuit, Forrest – Despite Yarralumla’s standout year, Forrest was home to the most multimillion-dollar transactions with 10 sales topping $2 million. No. 36 Arthur Circle topped the list selling for $3.4 million in August.
The perfect home
For Jess Ross, above, it was a matter of finding the right home, rather than market conditions, that sealed the deal when she purchased her property in 2016.
Jess was renting with a friend in the inner north when she found a two-bedroom Willemsen-designed townhouse in Weston Creek.
The pitched roof and natural light were major attractions, as was the large courtyard that allowed plenty of room for her groodle (golden retriever cross poodle), Rudy.
The youth mental health worker had previously owned a home, so she had the savings stashed away to make the move when the time was right.
“I was pretty fortunate,” Jess says. “Three homes in the complex came on the market at the same time.”
Jess bought the home through Peter Blackshaw Woden and Weston Creek agent Michael Pead, who negotiated a smooth transaction that is set to settle within the next couple of weeks.
Cover property
3 Geerilong Gardens, Reid
$2 million-plus
5 bedrooms, 2 bathrooms, 2 parking spaces
Auction on Wednesday, December 14 at 6.30pm, onsite
Inspect on Saturday, from 11.30am-12.15pm and Wednesday, 6.30-7.15pm (by appointment only)
Michael Pead and Shane Killalea, Peter Blackshaw Woden and Weston Creek, 0431 937 684 or 0412 152 607
A year of strong sales has been boosted by a few standout properties hitting the market. Number 3 Geerilong Gardens in Reid is no exception.
The 1930s house is positioned on a 1344-square-metre block within minutes from the city.
Classic architectural features are blended with modern, high-end inclusions and a seamless connection between indoor and outdoor spaces.
A formal lounge and dining room captures the home’s heritage with an open fireplace, high ceilings and cypress pine floors. An informal family room flows from the kitchen and onto the alfresco area through glass bi-fold doors.
These integrated spaces provide the perfect setting for grand-scale entertaining.
There are five bedrooms with built-in wardrobes and the master suite has a walk-in wardrobe, luxurious en suite and direct access to the patio. A study, double garage, workshop and ample storage space complete the package.
Geerilong Gardens is one of the suburb’s best streets, encircling parkland on the fringe of the city. It is close to some of Canberra’s most iconic buildings, including the Australian War Memorial, while the city and local schools are also within easy reach.