ACT dwelling investment likely to increase due to improving labour market and population growth: NAB
It appears that confidence is slowly returning to the Canberra housing market after conditions were relatively sedate since the 2010 federal election.
Last year the Canberra housing market recorded the strongest housing market conditions since 2011, with dwelling values rising 4.1% over the full twelve months to be 5.6% higher over five years.
Growth conditions have been concentrated within the detached housing sector, with house values rising 4.5% over the year compared with a 0.8% fall in unit values.
Dwelling investment likely to increase due to improving labour market and population growth
The relative size of the housing market, limited data and the overall significance of the public sector to the local economy makes it difficult to reliably produce forecasts for property values in the ACT.
Nevertheless, the ACT economy is gradually recovering from the recent fiscal tightening and public sector job cuts. NAB Economics expects economic growth to gradually improve and unemployment to stay low. With the improving labour market and population growth, dwelling investment is likely to improve as well in line with higher building approvals.
Similarly, an improving economy will provide underlying support to property values, the latest NAB housing insights report suggests.