Canberra is still one of the country’s best-performing economies on the back of strong population growth, but any tightening of the federal budget could take some wind out of its sails, a new Deloitte report says.
It comes a separate report from BIS Oxford Economics, also published on Monday, said the introduction of first home buyer stamp duty exemptions in the ACT from July 1 was expected to help housing price growth.
It said the median house and unit prices were forecast to rise by 10 per cent in the three years to June 2022.
“Although unit price rises will be weighted toward the end of the forecast period as the current supply pipeline is worked through,” it said.
A 10 per cent increase would take the median house price in Canberra from $680,000 to $750,000 in June 2022, the BIS Oxford report said. This would be the third-highest median in the nation, behind Sydney ($1.04 million) and Melbourne ($810,000). The 10 per cent growth would also be the third highest over the three-year period, behind Brisbane (20 per cent) and Adelaide (11 per cent).
The report said the minimal house price growth in Canberra from 2017-18 to 2018-19 had been impacted by record unit supply, an impending federal election and first home buyer incentives in New South Wales.