Almost two-thirds of Canberra homes initially listed for auction are switching to private treaty as buyers gain more choice and competition eases, new Domain analysis shows.

The share of auction-launched listings converting to private treaty jumped from 28.1 per cent in February to 62.5 per cent in July, an increase of 122.4 per cent.

Canberra also recorded the largest increase among the major auction markets in properties listed as private treaty from the outset, rising from 57.9 per cent to 72.3 per cent.

The shift was even stronger in Belconnen, where the proportion of auction listings converting to private treaty increased from 20.2 per cent to 54 per cent, a 167.6 per cent rise.

Domain chief residential economist Nicola Powell said the figures pointed to buyers gaining greater negotiating power as more properties became available and competition eased.

“Auctions tend to perform best when there are multiple buyers competing for the same property. As buyers gain more choice and competition eases, creating that auction-day momentum becomes more difficult,” Dr Powell said.

She said sellers were not abandoning the market but changing strategy, with private treaty offering greater flexibility over price and negotiations.

Canberra’s shift was part of a broader trend, with more than half of auction-launched listings across Sydney, Melbourne, Adelaide, Brisbane and Canberra now converting to private treaty.

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