Apartments are on Canberra bargain hunters’ shopping list. Photo: Michelle Kroll.
The hoped-for rush into the ACT residential housing market after February’s interest rate cut has not eventuated, but prices continue to edge upwards.
The overall gain was just 0.2 per cent, according to the CoreLogic Home Value Index for March, with prices for standalone houses rising 0.3 per cent and apartments and townhouses flat but holding on to February’s almost 1 per cent gain.
In terms of median values, Canberra sits third at $854,000, behind Sydney ($1,190,600) and boomtown Brisbane at just under $900,000.
For houses, Canberra’s median is $970,000, again behind Sydney ($1,473,000) and Brisbane ($981,400), while ACT apartments and townhouse values are now the third lowest in the country at $590,000, as Adelaide and Perth values rise.
Over the 12 months, values are still negative for all housing types, but this year, to the end of March, apartments and townhouses have risen by 0.5 per cent, reflecting budget-conscious buyers’ pursuit of affordability.
The Property Collective’s Will Honey said the interest rate cut provided some growth, but the market remained patchy, with a lot of properties available and buyers taking their time.
Well-presented properties with little to worry about continued to sell quickly, but the main focus was on the cheaper end of the market, particularly apartments.
“People have entered the market because of the interest rate drop, but it’s not a frenzy,” Mr Honey said.
“We have stimulated some of that lower level price stuff to move, but there’s still a fair way to go because there’s a bit of stuff on the market in that price bracket in that entry level.”
The sub-million-dollar market has been pretty competitive, but the high-end market has slowed somewhat. Table: CoreLogic.
The Reserve Bank will meet today (1 April), but the consensus was that the market would have to wait for another rate cut, he said.
The federal election also provided uncertainty, and some buyers were waiting to know what kind of government would result and what kind of housing policies would be in place.
Mr Honey said that while the sub-million-dollar market had been pretty competitive, the high-end market had slowed somewhat.
He said this might change after today when foreign investors will be barred from buying established dwellings for two years.
“That’s a pretty big incentive for buyers to get out there,” Mr Honey said.
CoreLogic said Molonglo still led the pack on price growth over the past 12 months at 2 per cent with a median value of $766,328, followed by Belconnen ($819,569 and 1.3%) and Tuggeranong ($849,200 and 0.6%).
Gungahlin suffered the most significant decline of -2.7 per cent for a median of $890,112, followed by Woden Valley ($960,921 and -2.2%), North Canberra ($741,848 and -1.5%), Weston Creek ($925,926 and -1.2%), and South Canberra ($1,057,935 and -0.5%).
Nationally, Australian property values reached new heights in March, reversing a recent downward trend, says CoreLogic.
Values increased 0.4 per cent over the month, the second consecutive month of growth in the national index, following a short three-month decline where values dipped 0.5 per cent
Every capital city except Hobart posted a positive change, along with each of the rest-of-state regions.
Research Director Tim Lawless said this was mainly due to the interest rate cut.
“Improved sentiment following the February rate cut is likely the biggest driver of the turnaround in values, along with the cut’s direct influence of a slight improvement in borrowing capacity and mortgage serviceability,” he said.
