Canberra house market at 5.30 amid uncertainty: Experts

Canberra house prices fell sharply in the second half of 2011, though the market performed better than Melbourne, Brisbane and Perth.

SQM Research director Louis Christopher expects Canberra house prices to fall further in 2012.

“There will be no major recovery in house prices in 2012. Stock levels are rising, though they are not as high other cities,” he says.

Time: 5.30

The Canberra market is heavily reliant on demand for housing from civil servants, and Christopher warns that if the government tries to get the budget back in surplus by cutting back the civil service this could be bad news for the property market.

Century 21 chairman Charles Tarbey similarly observes that “the uncertainty of the Labor government’s position could see the property market [in Canberra] stagnate for some time”.

Population: 358,000

Median house price: $555,000

House price growth in February 2012: 2%

Annual house price growth to December 2011: -2.5%

Annual house price growth to July 2011: 3.8%

Rental yield: 5.8%