Canberra housing market a top winter performer

The Canberra housing market continues to produce robust results with prices still rising through winter and the local market remaining a top-performing capital.  

The median asking price for houses listed for private treaty in Canberra increased by 1.6 per cent over the three winter months ending August, to a new record high $609,500.This was the second highest quarterly growth rate of all the capitals and only behind the booming Melbourne market, where house prices increased by a remarkable 6.9 per cent.

Canberra’s median house price for private-treaty listings is also now the second highest of all the capitals, behind only the high-priced Sydney market that recorded a significantly higher winter median of $799,000.

Annual growth in Canberra house prices has increased sharply, rising by 12.9 per cent compared with winter last year but again well behind the red-hot Melbourne market, where annual asking prices have increased by 23.6 per cent.

However, most capitals have recorded modest increases in asking prices for houses during the past year with the exception of Hobart with a rise of 12.5 per cent, just below the Canberra result but with a median well below at just $370,000. Adelaide and Perth were the only capitals to record a fall in house prices over winter, down by 0.8 per cent and 2.1 per cent respectively.

Perth median asking house prices have now fallen by 5.2 per cent over the past year and is the only capital with a negative annual result.   

Asking prices for Canberra private-treaty unit listings also increased over winter, up by 2.4 percent to $419,000 and an annual rise of 7.4 per cent compared with winter last year. However, Canberra’s annual unit increases were well behind the capital city leaders Hobart (13.5 per cent) and Melbourne (12.8 per cent). By contrast, Darwin, Perth and Brisbane unit prices continued to decline.

Canberra regional results were mixed over the three winter months ending August, with Belconnen clearly the top performer for asking-price growth for houses, up by 5.3 per cent to $549,900; followed well behind by Weston Creek, up 0.4 per cent to $695,000; and Canberra Central and Gungahlin both steady with medians of $899,950 and $649,000, respectively. However, prices growth over winter declined in Tuggeranong (down 1.4 per cent to $542,500) and Woden Valley (down 3.1 percent to $770,000).

However, annual house prices increases for Canberra regions were mostly strong, with Weston Creek recording the highest growth rate at 19.8 per cent, followed by Gungahlin (18 per cent), Belconnen (13.4 per cent), Canberra Central (12.5 per cent), Woden Valley (9.3 per cent) and Tuggeranong up by 8.7 per cent compared with winter last year.

Most Canberra regions reported increases in asking prices for units over winter, with Gungahlin the leader with 5.1 per cent, followed by Canberra Central up 2.3 per cent and Tuggeranong up 1.8 percent. Unit price growth was relatively flat in Woden Valley, Weston Creek and Belconnen. All Canberra regions reported positive growth in unit prices over the past year.   

The Canberra winter housing market has established a positive springboard for a robust spring selling season with continuing low interest rates, heady confidence and a solid local economy to energise further prices growth.

Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket