Ben and Sandi Reay are selling their home in Latham on Saturday. Pictured with their children Adalynn, 3, and Owen, 5 months. Photo: Jamila Toderas About $85 million worth of Canberra property will go under the hammer on Saturday as the nation’s capital hosts its biggest auction day on record.
There are 96 properties scheduled for auction in the ACT and 12 in Queanbeyan. The mix of properties includes modest townhouses, substantial homes in prestige suburbs and a three-block package in Lyneham.
Canberra had a further 28 mid-week auctions and two are scheduled for Sunday.
The Saturday before Easter is typically the year’s biggest day for auctions. The previous record was set in 2016 when 92 properties were auctioned on the pre-Easter Saturday.
Peter Blackshaw Real Estate Belconnen principal Peter Walker said the auction method was gaining traction as it benefited both buyers and sellers.
“An auction is the most transparent means of negotiating for ownership of a property,” Mr Walker said.
“The great thing for the seller is the property is sold at the fall of the hammer. There’s no uncertainty about whether the sale is going to proceed.”
Luton Properties director Richard Luton said auctions had become the preferred method for house sales throughout all sectors of the market.
“This year we’ve had record prices and properties selling well above reserve,” Mr Luton said.
He said the competitive nature of the current market had attracted strong clearance rates in each region for all housing types.
Mr Walker said a demand for large blocks was also driving the market.
“Because people are seeing a surge in property values they have a sense of urgency,” Mr Walker said.
“I can see it continuing in the short term. Blocks in the new suburbs aren’t as large as the established suburbs. Anyone wanting a decent block where their kids can play in the backyard are wanting to buy them while they can still afford them.”
Sandi and Ben Reay’s home in Latham will go under the hammer on Saturday afternoon.
They recently purchased a home at auction in the neighbouring Belconnen suburb of Dunlop.
“We went for an auction as we needed that quick turnaround – we can’t afford two mortgages,” Mrs Reay said.
“We’re excited, scared and nervous. It is quite stressful, but Ben [Oostermeyer] from Luton has been really supportive, he talked us through the process and gave us a lot of ideas of what buyers are looking for.”
Domain chief economist Andrew Wilson estimated Canberra’s Saturday listings were worth about $85 million.
He said the volume of auctions was remarkable for the city.
“This year you would have thought there would be a tapering of numbers, as Easter is a month later compared to last year, but that hasn’t happened,” Dr Wilson said.
“It does characterise what a very solid market Canberra has been.”
Dr Wilson said the first quarter of 2017 was strong and there is sentiment among homeowners that it’s a good time to sell.
“There’s a sense of a rush to market, but certainly the results are there,” Dr Wilson said.
“It’s not putting off buyers. Buyers are quite happy to keep those clearance rates ticking over and we certainly have strong prices growth.”
The Canberra median house price surged 5.6 per cent over the December quarter to $684,395, according to Domain Group Data.
Dr Wilson said Canberra has been in catch-up mode since 2015.
“Canberra’s median was nearly as high as Sydney’s in 2011 and it’s well behind Sydney now,” he said.
Dr Wilson said he didn’t expect Canberra prices to reach Sydney’s median house price of $1.1 million, but there was still room for growth.
“I think prices will continue to grow but I think it you’d be very heroic to expect another very big quarter like the quarter that we’ve just had,” he said.