How property prices trekked in Canberra's northern regions

House prices in Canberra’s north continue to rise, reaching record highs within the last financial year, according to a report. 

The latest Domain House Price Report reveals median house prices in the regions of Belconnen, Gungahlin and the Inner North all increased over the fiscal year 2021/22 by 24.8, 23.5 and 18.6 per cent, respectively. 

Gungahlin reached a median house price of $1 million for the first time. However, the peak annual growth for the region – 28.2 per cent – was reached in March 2020. 

The Inner North remains the most expensive northside region in which to buy a house with a median house price of $1.450 million.

Like Gungahlin, the annual growth was not the highest the region has seen. In December 2021, the Inner North measured a yearly increase of 41.8 per cent. 

The data shows that, while the peak of annual growth is in the past, there is “still a strong and robust rate of growth” in the area, says Domain chief of research and economics Dr Nicola Powell. 

Belconnen recorded its strongest pace of annual growth since 2003. In the 12 months to June, the median increased to $950,000.

What was once considered “the affordable heartland of Canberra’s north” is changing, Powell says.

“I think what the latest house price data says about the balance of supply and demand in these markets is that demand has far outweighed the level of houses.

“[Belconnen is] deemed as a more affordable location in Canberra, but it’s edging towards that million-dollar house price.” 

Steve Lowe of Agent Team Canberra says each northern region is popular to buyers for different reasons. 

“The Belconnen region has a great shopping centre, and older-style homes on larger established blocks of land,” he says. 

“Whereas in Gungahlin you get compact blocks and modern homes, and the Inner North has a mix of both.

“Depending on buyer requirements … every region has a drawcard of its own.”

The northside is also experiencing a flow-on effect from the market highs of 2021 that is affecting house prices, Lowe says. 

“There are still some residual effects from the highs of late 2021 where buyers with pre-approvals that are about to expire are still trying to snap up property,” he says. 

“These buyers are having to go back and reassess the banks with a higher rate, and are borrowing less and paying more for borrowing.”