The demand for multimillion-dollar residential properties in Canberra has reached record highs. Last year, there were 34 sales that exceeded the $2 million mark in the Australian Capital Territory. 

However, this wasn’t always the case. Just 15 years ago, multimillion-dollar sales in Canberra were unheard of. The city achieved its first $1 million sale in 1988, and 13 years passed before it crossed another major milestone.

The first sale to cross the $2 million mark took place in 2001 when 18 Mugga Way changed hands for $2,260,000. The following year, the properties at 23 and 14 also broke the $2 million barrier when they changed hands.

According to data from Allhomes, just 0.3% of Canberra property sales break the $2 million mark. Nevertheless, it’s a segment of the market that has strengthened over time.   

“We’ve certainly seen the development of some high-quality homes and there’s been an increase of those [in] the Canberra market over the past five years,” said Mario Sanfrancesco, one of Canberra’s top sales agents.

“The real estate market has become a lot more sophisticated in terms of architecture, design and the quality of construction. That segment of the market has grown substantially.”

As for property buyers and sellers who want to achieve the highest sales figures, the bar has been set pretty high. The most expensive sale of 2016 took place in June when a palatial property at 16 Brown Street in Yarralumla sold for $3.95 million.

A further 15 properties were sold for more than $2 million this year, mirroring last year’s January to September record of 17 properties.

Prices are being affected by growing demand and dwindling supply. According to Nicola Powell, a data scientist at Allhomes, the average number of days a prestige property sits on the market has dropped drastically this year. In 2015, multimillion-dollar properties sat on the market for an average of 144 days; this year, that number has dropped to 53 days.

“Supply is declining across all sectors of the housing market and increased auction clearance rates are signs of an active market,” Powell said.
 

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