The Canberra region where house prices are skyrocketing

Gungahlin house prices have surged 12.1 per cent over the past 12 months, leading the charge in Canberra’s growing housing market.

McGrath Estate Agents Gungahlin director Justin Taylor said he wasn’t surprised by the rapid growth of the north-side.

“The ACT government has significant plans for Gungahlin in residential, commercial and infrastructure growth – it’s ongoing and constantly improving,” he said.

“People with busy lives are moving away from bigger blocks and the maintenance they entail. I think the smaller blocks out here are actually an attractive feature.

“There’s also great value in Gungahlin for the age and quality of the homes.”

Domain data shows Gungahlin’s median house price for the June 2018 quarter was $680,000, up from $606,500 in the same period last year.

Domain chief data scientist Dr Nicola Powell attributed the growth to the fact it is a relatively young region.

“An element of Gungahlin’s growth is the fact there are a lot of new house and land packages on offer in the region at the moment and that tends to elevate price growth,” she said.

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Domain’s recent June Quarter 2018 House Price Report showed Canberra’s median house price has risen 6.2 per cent over the past year to $749,865, defying the national downturn.

Despite annual house price rises in most ACT regions, the inner south recorded a decline of 1.4 per cent. The median house price in the region for the quarter is $1.265 million.

“The pace of growth has slowed in Canberra and when you start to see a slowing of growth, the slower pace comes in the upper end of the market,” said Dr Powell.

“Buyers are finding their borrowing capacity is reduced and this is impacting the inner south.”

In the unit market, Belconnen experienced the greatest annual fall at 5.5 per cent to $392,000. Overall, Canberra’s median unit price has declined 2.1 per cent over the past 12 months.

But while there is an overall decline in unit prices, Tuggeranong’s unit price has surged 7.9 per cent over the past 12 months.

“There are a number of property cycles going on in Canberra at the moment across both regions and units and houses,” added Dr Powell.