Houses in the Inner North crack $1 million mark in median house prices: Domain report

Buying a house in Canberra’s Inner North is now farther out of reach for some house-hunters, as data shows the region’s median house price has cracked the $1 million mark.

The Inner North’s median house price hit $1,026,500 in the December quarter, according to the latest Domain House Price Report, after jumping 15.6 per cent over the year – the largest price spike of all Canberra regions.

As one of the capital’s oldest regions, many prospective buyers looked to the Inner North for its leafy terrain and popular walking trails, Karen Brill, of Hayman Partners, said.

“This is a region with a lot of offerings and a certain charm to it that can only be found here,” Ms Brill said.

The Inner North has seen a swarm of activity in the past year, said Bree Prince, of Hive Property, with demand mostly driven by locals looking to upsize, international buyers and Sydneysiders moving in.

Ms Prince sold a house in the Inner North suburb of Ainslie on Saturday for $1.126 million to a phone bidder from Singapore.

View property

Bidding for the charming two-bedroom house at 6 Cowper Street kicked off at $900,000, with three of the five registered bidders making offers. 

The renovated property ticked all the boxes for the eventual buyer, who will use it as an investment property for 12 months until she moves to Canberra, Ms Prince said.

“She wanted to buy this house now while she could before she is priced out of the market. That’s how active Canberra’s property market is,” she said.

“There are many houses in the Inner North that have a lot of character to them, sometimes it’s the iconic Canberra red-brick home or a heritage-listed house, which was the case for 6 Cowper Street, that was fully renovated on the inside. You don’t get that in the new suburbs.”

Ainslie had the strongest price growth of all the Canberra suburbs last year, with its median house price increasing 24.2 per cent year-on-year to $1.195 million.

While the Inner North has hit the $1 million mark, prices in Woden Valley are not far off with a median house price of $985,000 – having recorded the second-highest price jump at 12.3 per cent year-on-year. 

If price growth continues at the same rate this year, it will surpass the $1 million mark. 

“I’m not surprised if it does reach that peak, because the number of buyers pushing house prices up is extraordinary,” said Jonathan Charles, of Independent Woden.

“Woden Valley has enjoyed a revitalisation in recent years and has become a sought-after region because of the essential amenities in the region and how close it is to nature. 

“It’s the best of both worlds, you’re in a bush setting but close enough to the cosmopolitan lifestyle.”

Demand for Woden Valley houses is being driven by upsizers and first-home buyers, who are pushing the entry-level price to $800,000, Mr Charles said.

“With all the government incentives available to first-home buyers and low interest rates, buyers want to take advantage of the market but it’s not just one buyer doing it, it’s every buyer,” he said.

“The real value of Woden hasn’t yet been hit and I think that will continue to increase.”