'A very aspirational place to be': Why house prices in Canberra's south have skyrocketed

Living in Canberra’s south now means living in a premium area with new Domain data revealing almost all regions have a median house price of more than $1 million, with one pushing past the $2 million mark.

The Domain House Price Report reveals median house prices in the regions of Molonglo Valley, Inner South, Tuggeranong, Woden Valley and Weston Creek recorded large increases in the past financial year.

The Inner South’s median reached $2.05 million, making it the only region in Canberra to be over $2 million. It recorded a year-on-year increase of 13.9 per cent.

Tuggeranong was the only region that didn’t crack the $1 million mark, with a median of $915,000 – up 21.2 per cent year-on-year.

Molonglo Valley recorded the city’s highest annual change in house prices, increasing by 31.4 per cent year-on-year to $1.215 million. 

Domain chief of research and economics Dr Nicola Powell says the year “was such a record-breaking milestone in the south of Canberra’s housing market”.

“There’s a variety of different price points … and what that tells me is that there’s been a broad spectrum of buyers in the market,” she adds. 

Rick Meir of Hayman Partners says it’s no surprise that the Inner South recorded Canberra’s highest median house price, and that the Molonglo region continues to rise.

“The Inner South has always been Canberra’s premium location, and I think it will continue to be that way; it’s a very aspirational place to be,” Meir says

“Molonglo Valley, on the other hand, is really unique because for the first time you have land releases that are actually very centrally located.

“It’s popular because it is a central location with the ability to buy land and design and build homes, or to buy a new home.” 

While Weston Creek and Woden Valley recorded year-on-year growth, their median house prices dropped by 1.6 per cent and 1.3 per cent, respectively, in the past quarter.

Meir says this is due to “the unsustainable rate of growth in the last year, which pushed buyers further south”.

“Twelve months ago, you would say that things cooled off, but there was absolutely no way it could continue in the way it was going,” he says.

“Price growth in Weston Creek and Woden Valley are still making buyers look a little further afield, and that price growth pushed buyers into Tuggeranong.” 

With house prices increasing, Meir says interest in units in the south remained high over the last 12 months.

“Unit prices have remained stable … and people who were thinking of purchasing a standalone house are having to look towards townhouses and units,” he says. 

“We also have quite a few people purchasing units as an alternative to renting with a view that when they move it can be an investment property.”