ACT News

Canberra home values rise 4.1 per cent for 2015, with 2016 looking more sedate

Canberra property owners are an extra $20,000 wealthier after a year of gains on the city's property market.

Dwellings in Canberra accumulated an estimated average of $21,910 in value in 2015, the CoreLogic RP Data December Home Value Indices results report issued on Monday revealed, the third highest appreciation in Australia.

Dwelling price depreciation of 1.1 per cent in December capped off an otherwise solid year for property in the capital, with home values up 4.1 per cent for the year.

But CoreLogic RP Data head of research Tim Lawless said while Canberra dwelling values were showing tentative signs of growth into the new year, market conditions were still volatile month-to-month

"As we move into 2016, it is clear that the strong housing market conditions of 2015 have softened over the final months of the year, setting the scene for more sedate conditions in the new year.

"Interest rates are likely to remain at their current historically low setting, which will continue to stimulate housing demand, however migration rates are continuing to taper which will offset some of this housing demand, particularly in the mining regions, which were previously benefiting from strong rates of migration from both overseas and interstate."

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The quarterly median dwelling sale price rose to $585,000 at the end of December, while gross rental yields for units were higher than houses in Canberra.

Homes in Sydney racked up the most value in the past year, with $81,995 added onto property worth.

Dwellings in Perth lost the most value last year ($19,968) with Darwin following closely behind ($18,154).

"The regions that are likely to underperform are those associated with a higher degree of economic uncertainty. The rate of decline may start to ease in Darwin and Perth; however growth prospects are likely to be at least a year away in these markets," Mr Lawless said.

The capital city tipped for the highest capital gains in 2016 is Brisbane.

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