Welcome to this week’s Luton Properties Market Update, where we break down the latest trends shaping Canberra’s real estate landscape. With Nick Paine, CEO of Luton Properties, at the helm, we explore the current property market activity, the impact of the RBA’s recent rate cut, and key insights on new home approvals.

Canberra’s Property Market: A Strong Start to 2025

As we approach the end of February, the Canberra real estate market is showing strong momentum. Over the past seven days, we’ve observed:

  • 15 properties exchanged – indicating consistent buyer demand.
  • 14 properties under offer – a positive sign for sellers looking to move forward.
  • 112 new listings so far this year – a stronger start compared to the same period in 2024.
  • Last week’s Auction clearance rate of 60% – aligning with Canberra’s average of 57-58%.
  • 25% increase in listing appointments month-on-month – suggesting more homeowners are considering selling.

These figures reflect a growing confidence in the market, with both buyers and sellers actively engaging in transactions.

The RBA Rate Cut & Its Impact on Buyers and Sellers

A major talking point in the market is the Reserve Bank of Australia’s (RBA) recent interest rate cut of 0.25%. This decision, made last week, is expected to influence mortgage affordability and buyer sentiment.

How Will This Affect Mortgage Holders?

While banks have started notifying customers about the rate cut, the changes won’t be immediate. Homeowners with mortgages can expect their banks to pass on the reductions over the next few weeks. This could result in lower monthly repayments, potentially encouraging more buyers to enter the market.

Will This Spark More Buyer Activity?

Early indicators suggest an uptick in open home attendance following the announcement. This reflects a renewed sense of confidence among buyers, who may see the rate cut as an opportunity to secure a property with slightly more favourable borrowing conditions.

However, other external factors—such as the looming federal election—could influence how the market moves in the coming months.

New Homes vs. Established Homes: What’s Happening in the ACT?

One of the more surprising insights this week is that the ACT has the lowest new home approvals in Australia. Historically, Canberra has been known as a high-construction area, but this downturn in approvals signals a shift.

What Does This Mean for Buyers & Sellers?

  • With fewer new homes being built, demand for existing, well-renovated properties is likely to increase.
  • This could drive up prices for move-in-ready homes, as buyers compete for limited supply.
  • A slowdown in population growth and migration to Canberra may also be contributing to this trend.

For sellers, this presents a prime opportunity to capitalise on the demand for established homes, particularly those that are well-maintained and updated.

Key Takeaways & What to Expect Moving Forward

The Canberra property market is off to a strong and active start in 2025. While we are seeing an increase in listings and buyer interest, several factors will continue to shape the market in the coming months:

✔️ Interest Rates – The full impact of the RBA rate cut will unfold over time, potentially stimulating further buyer demand.
✔️ Election Uncertainty – Political and economic shifts could influence market confidence.
✔️ Limited New Home Supply – Buyers may prioritise move-in-ready homes over new builds due to record-low new home approvals.

At Luton Properties, we remain committed to keeping you informed with real-time market insights. Whether you’re buying, selling, or investing, now is a key moment to assess your property strategy.

Looking to Buy or Sell? Get in Touch!

Our team of expert real estate professionals is here to help. Whether you’re exploring market trends, considering a sale, or searching for your dream home, we’re happy to provide tailored guidance based on your needs.

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