Canberra property values record strong monthly growth

Canberra was one of Australia’s top performing property markets in May with home values rising 2.5 per cent, according to new data released by CoreLogic.

The CoreLogic RP Data May Home Value Index, published on Wednesday, showed the increase in Canberra dwelling values over the month was the second strongest result of all capital cities.

Sydney topped the list recording month-on-month growth of 3.1 per cent.

Canberra also achieved the second best quarterly result, recording a 2.9 percent increase in home values. Sydney experienced a growth of 6.6 per cent.

The year-on-year result for the nation’s capital was 5.7 per cent, which fell short of the combined capital city result of 10 per cent.

However, the year-on-year result is a marked improved on last year’s figure; in May last year, Canberra’s year-on-year result was just 2.3 per cent.

The median house price in Canberra is now $625,000, while the median unit price is $409,900.

Canberra remains the third most expensive city in which to buy a house, with Sydney recording a median price of $890,000 and Melbourne $650,000.

CoreLogic research analyst Cameron Kusher said the result comes as Sydney and Melbourne’s property boom begins to slow down, while other capital city markets have started to play catch-up.

“Most of the growth nationally has been in Sydney and Melbourne, but that’s starting to slip over to other markets such as Canberra, Brisbane and Hobart,” Mr Kusher said.

However, Mr Kusher said the strong growth in Canberra is contained within the detached housing market.

While house price growth increased by 6.4 per cent over the past year, the overall dwelling result was pulled down by a 3.5 per cent decrease in unit values.

Mr Kusher said he did not expect the upcoming election would affect property growth in the Canberra market, which has stabilised since the last round of major public service cuts.

He said the election result will not have a significant impact on Canberra’s property market.

“If the Coalition stay in it will be business as usual and Labor tends to create more jobs in the public sector, so there’s no real concern,” Mr Kusher said.

Annual rental yields in the nation’s capital remained above the national median. A 3.9 per cent gross rental yield was recorded for houses, while units returned a gross rental yield of 5.4 per cent – a result second only to Hobart’s 5.5 per cent.