Another week of strong auction results for Canberra
Strong auction results during the week ending 14 February saw CoreLogic report a preliminary auction clearance rate of 91.23% for Canberra. This was the highest result nationally ahead of Adelaide’s 89.47% and Melbourne at 87.79%. A high proportion of results in Canberra were confirmed at the time preliminary figures were released; however, in Melbourne final figures are expected to revise down due to cancellation of scheduled auctions as the city entered another mandatory lockdown.
Consecutive weeks of clearance rates exceeding 90% indicate market conditions are amid a strong growth cycle. Without unexpected intervention taking effect prior to the end of the month, I expect to see reporting confirming house values increased throughout the month.
Those seeking established properties face a daunting prospect where values are increasing quickly. If a first inspection of a property was several weeks prior to auction, by the time of the auction and those buyers are ready to bid, prevailing conditions would have caused market perceptions of value to increase resulting in a higher sale price being achieved.
Will Canberra see an increase in migration?
Be it good fortune, good management or a combination of both, Canberra has emerged as a global leader in management of COVID-19. Reported cases have been nominal and did not result in widespread community transmission, allowing Canberrans to live a relatively normal existence, albeit with far more QR codes and hand sanitiser than anyone could have imagined just over a year ago.
High paying jobs, low unemployment, affordable housing as a proportion of family income, good schools and a fantastic lifestyle enhance the attractiveness of living in Canberra, nationally and globally. With the rollout of Coronavirus vaccines imminent, will Canberra be a net benefactor of a surge in migration? In this scenario, a sudden increase in population would act like dousing a fire with kerosene to our already hot property market.
Prospective tenants also face highly competitive conditions as the rental vacancy rate, according to SQM Research, has fallen from 1.4% in January 2020 to 0.8% in January 2021. Asking rents for houses increased by 6% and units 3.9% during the same period, indicating neither a global pandemic nor delivery of the largest mixed-use precinct in the Southern Hemisphere were able to improve a chronic shortage of rental stock in Canberra.
The underlying strength of the Canberra economy and pace of increasing values whether you’re participating in the rental or sale market, indecision and delaying decisions could end up costing you significantly more for the same property in a few months’ time.
With Sam Dodimead, local property professional and host of Canberra Property Podcast where you can get to know the consultants contributing toward deliver of new buildings. Stream from wherever you listen to podcasts.
Read the market wrap from last week here.
Find property listings at Canberra Daily Real Estate.
