Canberra has bucked a nation-wide growth in home prices during October and has once again recorded a fall in values for the month.
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The RP Data-Rismark October housing results show that Australian capital city home values increased by 1.3per cent in October and 3.4per cent for the quarter, which was largely driven by Sydney and Melbourne markets.
Sydney home prices grew during the month by 2.4per cent and 5.5per cent over the quarter.
Canberra was one of three capital cities to record a decline in values and has the second-worst performance for the month and the recent quarter.
Dwelling values fell by 1.5per cent in October and 1.4per cent for the past three months.
House values dropped 1.7 per cent for the month but units recorded a small increase of 0.4per cent.
RP Data senior research analyst Cameron Kusher said while the annual growth rate for Canberra remained respectable at 3.5per cent, the rate had been decelerating during the past three months.
He said this could be the beginning of a slowdown in the Canberra market.
''I think most people were forecasting that after the election there probably would be a bit of a slowdown in the market; perhaps now that is actually coming to fruition,'' Mr Kusher said.
''I just think that there's going to be less demand for housing in Canberra over the next 12 months than there has been over the last 12 to 18 months.''
Mr Kusher said that because the city had not yet experienced the job cuts predicted before the federal election people were holding back on buying, with the expectation something would happen in the next year.
He said the Canberra market had already peaked for the current cycle and prices were now 1.1 per cent lower than the previous peak in July 2010.
But Real Estate Institute of the ACT president Michael Kumm said the Canberra market should not be compared with the large capital cities and remained just like a country town.
''We are somewhere between 170 and 190 listings every week and the stock is turning over nicely,'' he said.
''There's a temporary oversupply of units but houses are doing well.''
He said Canberra still remained a great market for investors with returns better than Sydney and Melbourne.
Houses in the ACT returned 4.4per cent rental yield and units 5.2per cent during the past three months.
Sydney house prices rose by 2.4per cent in October for an annual gain of 11.6 per cent, the strongest year-on-year rise since mid-2010. Melbourne also did well, rising by 1.2 per cent in October for an annual pace of 7.8 per cent.