Affordable Canberra Suburbs Power Auction Market
Canberra's property auction market is experiencing a significant surge driven by its most affordable suburbs, with new data revealing the Tuggeranong region achieved the capital's highest clearance rates during October. This strong performance in budget-friendly districts comes as the Australian Government's Expanded 5% Deposit Scheme takes effect and total property supply in Canberra reaches unprecedented levels.
Record-Breaking Clearance Rates in Key Regions
According to Domain data, the Tuggeranong region led the capital with an impressive 77 per cent clearance rate last month, representing a substantial 17.3 percentage point increase compared to the same period last year. Belconnen followed closely with a 67.5 per cent clearance rate, marking a 6.7 point year-on-year improvement.
Overall, Canberra recorded a 59.3 per cent auction clearance rate in October, showing a slight 2.7 percentage point decrease from September but a significant 9.2 percentage point increase year-on-year. Industry experts suggest the minor monthly decline was likely influenced by the record-high property supply, which has provided buyers with substantially more choice and negotiating power.
Market Shifts and First Home Buyer Impact
Justine Burke of Momentum Property confirmed the ground-level trends match the statistical data. 'Interest for houses in the market up to $1 million has been really strong, particularly for three-bedroom homes or townhouses up to $750,000,' she observed.
Burke anticipates the government's 5% Deposit Scheme, which commenced in October, will soon create broader market impacts. 'Those selling properties up to $1 million are then likely to go on to buy properties in the next price bracket, so I expect we'll begin to see a flow-on effect towards those higher price points in the market, too,' she explained.
In another notable market shift, Burke identified that buyers are returning to 'fixer-upper' properties after a period of avoiding renovation projects. 'We have sold quite a few properties recently that have needed a lot of work, which up to 12 months ago would not have been as popular with buyers,' she noted. 'It seems people are interested in doing the work again and see value in completing renovations the way they like it.'
The combination of government incentives, increased supply, and renewed buyer confidence in affordable suburbs is creating a dynamic property landscape in Canberra, with Tuggeranong and Belconnen emerging as clear market leaders in the current climate.
