Canberra’s median house price is tipped to reach $1 million by June if current trends continue.
The latest price report from Domain announced the city is seeing its biggest house prices ever, and the strongest growth for house prices in 17 years.
Median house prices in the nation’s capital are currently sitting at $927,577, an increase of 9.7 per cent in the first quarter of 2021, following yearly growth of 19.5 per cent.
But in good news for potential buyers, Domain senior research analyst Dr Nicola Powell says the Canberra housing market is unlikely to continue gaining momentum.
“This rapid growth is likely to be the peak quarterly rate and not be sustained in following quarters with such ferocity,” Nicola says.
She says the biggest market driver has been a scarcity of houses available and record-low interest rates.
“A lack of houses for sale at a time of strong demand has ultimately created stiff competition between buyers, depleting overall stock to a multi-year low.”
That ‘stiff competition’ has seen the median house price increase by more than $100,000, but the same can’t be said for Canberra’s apartment market.
Investors, downsizers and families are looking for homes, and their lack of interest in high-density housing is impacting prices. Units across the ACT have experienced a lull in value across the past year, and especially in the first quarter of 2021.
The median price of a unit in Canberra is now $473,304, down five per cent over the last quarter, largely negating last year’s increase of 2.8 per cent.