The four bedroom four bathroom property on Hotham Crescent is also believed to be the third most expensive home ever sold in the territory.

The hotly contested auction on Saturday had three serious bidders vying for the home with more than 100 spectators.

In the end a Canberra family snapped up the home, which can also claim the record of the most expensive Deakin residential property ever sold.

The previous record was held by a home on the National Circuit which was bought by an embassy for $4.3 million almost 10 years ago.

The new owners will enjoy views of parliament house from multiple areas, a large swimming pool and spa, multiple living areas and top end appliances and finishings.

Luton Properties agent Richard Luton, who sold the property, said based on the quality of the property he had been expecting a strong auction.

"[The seller and successful bidder] were happy, the people who probably weren't happy were the underbidders,"

"It was a really lively auction, to have three people bidding above three million is a really strong outcome.

"In the current market you'd be silly not to put a house to auction.

"Anything that's done up really nicely is selling very well at the moment."

Mr Luton said the Deakin home, built in 2010 on a 1711m2 block, was one of the best he had ever seen.

He said homes like it rarely came on the market because people who build them usually stay for a long time.

Mr Luton said there was no shortage of luxury homes in Canberra, with plenty of properties that could smash residential records.

But getting them up for sale was another story.

"[High end house prices] are only going to get better and better," Mr Luton said.

"There are so many houses in Canberra worth over $10 million, they just never hit the market."

Mr Luton said there was a strong demand for any properties in the inner north or south, extending to Belconnen and Woden.

According to Core Logic there was a 68 per cent clearance rate at auctions across Canberra on Saturday.

The sale of the Hotham Crescent home overtook the sale of a Yarralumla mansion in November last year as Canberra's highest auction price.

That home on Hunter street sold for $5,475,00.

The Deakin home sold on Saturday also overtook the Yarralulma mansion to become the third most expensive residential property ever sold in the ACT.

Canberra's strongest sale on record came in 2010 when 27 Mugga Way sold for $7.3 million.

The second biggest sale was achieved in 2013, when 20 Mugga Way sold for $7.2 million

That included a Forrest home that sold for almost $3 million and two other Deakin homes which sold for well above $1 million.