Canberra house prices hit a new record high at the end of last year with an increase of 9.1% year-on-year, new figures from Domain reveal.
The median house price in Canberra is now $855,530, increasing more than 6% over the December quarter. According to Domain’s senior research analyst, Nicola Powell, this is the steepest annual gain since early 2017.
“Over the past five years house prices have risen almost 32% while growth in unit prices has been less than half this,” said Dr Powell.
“Some areas have increased new development supply, which will weigh on capital growth.”
Unit prices in Canberra have also increased to a median of $485,410, a gain of 3% over the December quarter of 2020; 1.3% shy of the record high seen at the end of 2019.
Dr Powell said Canberra was something of a “quiet achiever” in 2020, emerging from the turbulent year “relatively unscathed”.
“While market activity did pull back during the peak of restrictions early in the year, successful containment of the virus and avoiding outbreaks meant an element of normality returned towards the latter part of the year.
“The Nation’s Capital has weathered past volatility well and the local property market again performed to its historic standard.”
Nationally, Domain’s data shows house prices across all Australian capital cities except Darwin and Perth hit record highs at the end of last year.
Canberra’s growth was second only to Hobart, which saw house prices in the Tasmanian capital increase by 12.4% year-on-year.
ACT tops HIA scorecard
The ACT has also taken out the top spot on Housing Industry Australia’s (HIA) housing scorecard for the first time since 2014.
The scorecard compares the states and territories’ housing markets with respect to a number of indicators such as building activity, renovations, housing finance and migration.
HIA ACT and Southern NSW director, Greg Weller, said the ACT saw strong leading indicators such as housing finance and approvals, and was first in the country for both interstate and overseas migration.
“A worrying aspect remains in the underperformance of detached housing, with approvals in last place, while commencements is fourth last.
“This is no doubt related to the stellar performance of HomeBuilder in other states, but 2020 will also likely reflect the second year running that the monthly average approvals in the Territory have fallen below 100, which is something that needs to be addressed.”
HomeBuilder take-up in the ACT has exceeded expectations, with more than 1,800 grants taken up so far.