ACT records fastest house price rise in decades 

Share Canberra's trusted news:

CANBERRA has recorded the fastest quarterly increase for house prices in nearly three decades, pushing affordability further out of reach, according to the latest Domain house price report for the March quarter. 

Sydney also recorded the fastest quarterly increases for house prices, although the report revealed that the growth isn’t likely to continue.

Over the March quarter, Domain senior research analyst Dr Nicola Powell said house prices surged by 9.7 per cent to $927,577. 

“This is the fastest acceleration of house prices over a quarter since Domain records began in 1993 and the first time they have cracked the $900,000 mark,” she said. 

“This has pushed annual house price gains to 19.5 per cent, the steepest annual increase in 17 years.” 

Dr Powell said Canberra is a breakaway performer compared to the other capital cities, recording the strongest annual and quarterly house price growth. 

“Houses at the upper end of the market are leading, with the strongest quarterly gains recorded in north Canberra, south Canberra and Woden Valley,” she said. 

“All three areas have a median above $1 million. A higher average wage, job security and low mortgage rates have spurred buyers to upsize.”

Ms Powell said units in the ACT have declined 5 per cent in the last quarter to $473,304, which is 2.8 per cent higher than the same time last year. 

“It has been a consistent Canberra trend, units providing more subtle growth compared to houses,” she said. 

However, she said the unit market is not uniform across the territory, with apartments in Gungahlin, south Canberra and Tuggeranong growing over the quarter and year.

Dr Powell also said that another quarter at the same percentage growth rate would push house prices above $1 million.

“That said, this rapid growth is likely to be the peak quarterly rate and not sustained in following quarters at such ferocity,” she said.

“This level of quarterly growth is normally the output of an entire year and is extremely rare for Canberra to experience in one single quarter.

“A lack of houses for sale at a time of strong demand has ultimately created stiff competition between buyers, depleting overall stock to a multi-year low. 

“Canberra’s auction clearance rate soared to 89 per cent in March, the highest point on record. It has been above 80 per cent for two months in a row, highlighting the market fierceness.

“Record low interest rates, high household savings, low stock volumes and incentives are fuelling a strong housing market performance.”  

Who Can You Trust?

In a world beleaguered by spin and confused messages, there's never been more need for diverse, trustworthy, independent journalism in Canberra.

Who can you trust? Well, for more than 25 years, "CityNews" has proudly been an independent, free, family-owned news magazine, serving the national capital with quality, integrity and authority. Through our weekly magazine and daily through our digital platforms, we constantly and reliably deliver high-quality and diverse opinion, news, arts, socials and lifestyle columns.

If you trust our work online and believe in the power of independent voices, I encourage you to make a small contribution.

Every dollar of support will be invested back into our journalism so we can continue to provide a valuably different view of what's happening around you and keep citynews.com.au free.

Click here to make your donation and you will be supporting the future of journalism and media diversity in the ACT.

Thank you,

Ian Meikle, editor

Previous articleWomen shine in real estate award nominations
Next articleSurvey: Rental market is less affordable than ever 

Leave a Reply