Significant price growth experienced in Canberra's residential market: HTW

Canberra has seen a significant growth in house sale prices over the past 12 months, according to Herron Todd White’s latest report.

The property valuation firm says that this is partly due to low interest rates and a limited supply of houses coming onto the market.

Yarralumla has been one of the strongest performing suburbs in Canberra over the past 12 months.

"Several recent sales have broken the Canberra auction record, the most notable being 12 Hunter Street, Yarralumla, selling at auction for $5.475 million," the report advised.

Other recent sales show high prices in Canberra’s inner suburbs have forced buyers to look to the outer suburbs to find a family home.

"Some other areas that have seen considerable growth over the past year are Woden Valley, Weston Creek and the southern suburbs of Belconnen.

This trend is also confirmed by some recent vacant land sales from the Mr Fluffy scheme.

Recent sales have shown houses are proving more popular than apartments," the report stated.

This is probably due to an oversupply of apartments in the Canberra market and a continued number of apartment developments beginning construction.

Currently buyers seem to be attracted to 4- or 5-bedroom houses in established suburbs, according to HTW.

The valuation firm pinpointed a 4-bedroom home at 37 Flanagan Street, Garran (pictured above) recently sold for $1.38 million.

There was also a 5-bedroom home at 60 Barada Crescent, Aranda recently sold for $1.25 million.

The majority of the higher sale prices were for renovated or new dwellings.

"It could be assumed the buyers are families looking to settle into a long term family home.

"This trend looks set to continue as properties in established suburbs remain tightly held and highly sought after," the report stated.

As the Mr Fluffy vacant land blocks are now being brought to market there may be a number of new houses in established suburbs come onto the market.

This increased supply may reduce prices but is likely to take effect in the longer term as the blocks are still in the process of being cleared and sold.