Canberra unit prices record the steepest annual fall in more than 20 years: Domain

Canberra unit prices record the steepest annual fall in more than 20 years: Domain
Canberra unit prices record the steepest annual fall in more than 20 years: Domain

Canberra's house and unit market continue to operate at different wavelengths as house prices shifted slightly higher over the quarter and unit prices recorded the steepest annual fall in more than two decades, according to Domain's latest House Price Report.

The report found, heightened development has weighed heavily on unit prices.

Canberra house prices grew 0.1% over the quarter and held flat over the year at $738,933.

Canberra unit prices fell 3.6% over the quarter and 6.1% over the year to $412,718.

Canberra unit prices record the steepest annual fall in more than 20 years: Domain

Domain Senior Research Analyst, Dr Nicola Powell said: “Canberra continues to defy the national downward trend, with house prices nudging marginally higher over the December quarter. Canberra is the third strongest Australian capital city, behind Hobart and Adelaide. Steam has slowly dissipated from the nation’s capital throughout 2018, the year closed with flat annual house price growth. Canberra, like all other cities, is being restricted by credit flows, although to a lesser extent than Sydney and Melbourne.

“However, new stamp duty exemptions to come into play in the second half of the year will likely increase demand from first-home buyers in the territory.

“Despite a diversifying economy, the public sector still accounts for a large employment base in the nation's capital. It is therefore likely that local consumer confidence will be dampened in the lead up to the federal election, with buyers and sellers holding tight.

“The prospect of an uncertain political landscape looming, and particularly if a change in government ensues, the demand for housing could be impacted in the short-term. However, house prices are unlikely to go backwards given the ongoing controlled supply of residential land, positive economic outlook and predicted population growth,” she concluded.

Canberra unit prices record the steepest annual fall in more than 20 years: Domain

Tags: 
Canberra Home Values

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