Canberra property prices have once again bucked the national trend, with house prices rising 4.1% over the June quarter, according to Domain’s Q2 House Price Report.
The report shows Canberra’s median house price as $819,090, a record high according to Doman’s senior research analyst, Dr Nicola Powell.
“The strong quarterly growth pushed median house values to a record high, breaking the $800,000 mark,” she said. “This is also the first time Canberra house prices have pushed above the median value of the combined capitals since 2013.”
Adelaide and Hobart also recorded a rise in house prices, at 0.2% and 1.4% respectively. All capital cities, Canberra included, saw unit prices decline. Canberra unit prices were down 1.3% to a median price of $453,750, which Dr Powell said is a “marginal fall compared to the steep decline of the previous quarter”.
“The housing market continues to operate on different speeds,” she said. “House prices have risen 31.4% over the past five years while unit prices increased 5.8%.”
Dr Powell said the ACT has not felt the economic impact of COVID-19 as much as other cities, with an unemployment rate that’s lower than the rest of the country, supported by jobs in the public sector.
“A resurgence of first home buyers enticed by low interest rates and government incentive schemes have helped many onto the property ladder and supported housing activity,” she said.
“Stamp duty waivers on land and off-the-plan purchases, together with the HomeBuilder grant, could continue to lure buyers.”
Nationally, house prices have fallen by 2%, and unit prices by 2.2% over the quarter, the first to show the impacts of the pandemic on the housing market.
Dr Powell said while most capital cities saw a drop in prices, government stimulus combined with mortgage ‘holidays’, low stock levels and low interest rates have “shielded” values from any significant decline.