Canberra’s housing market appears to have rebounded with new data released today showing the territory’s median recorded the highest increase of the capital cities over the June quarter. Domain’s quarterly house price report has found that house prices jumped 1.5 per cent in the three months to June 2019. But Canberra’s median house price of $741,947 is 0.1 per cent lower year-on-year, or $699.
The median unit price in Canberra of $448,737 dropped 1.4 per cent over the quarter but is up 1.9 per cent year-on-year, or $8153 higher than June 2018.
Domain economist Trent Wiltshire said a reason for the quarterly bounce for houses was that the time period captured a turning point for the market, with an interest rate cut and regulator softening occurring after the federal election.
“Canberra property prices were soft over the year … in particular, tight lending conditions and election uncertainty weighed on prices, and then what has happened over the past six to eight weeks has potentially signaled a bit of a turnaround in prices,” he said.
Despite the annual growth in unit prices, Mr Wiltshire said construction levels would “keep a lid” on apartment prices, and that attached dwellings had fluctuated between $400,000 and $460,000 since 2010.“Unit prices haven’t really moved much at all, and I think the key reason prices haven’t increased is because the apartment and construction boom has kept a lid on prices,” he said.
Although house prices in Sydney and Melbourne have been falling since December 2017, Canberra’s housing market did not experience an annual decline until March this year.
The nation’s capital appears to be recovering much sooner as well with Canberra recording the strongest quarterly growth. Mr Wiltshire said was mainly because the price boom was stronger in the two largest capital cities, and also due to Canberra’s population growth.