ACT News


Canberra house prices on the slowdown

House price growth has slowed in Canberra as the city records one of the smallest increases in value of all the capital cities.

The Australian Bureau of Statistics' House Price Indexes for established houses showed ACT prices grew just 1 per cent over the June quarter and 2.6 per cent over the year.

This was the third smallest spike in house prices nationally for the quarter behind Adelaide's increase of 0.3 per cent Hobart's decline of 1 per cent.

Hobart was the only city not to record an increase in house prices for the quarter.

The quarterly results for the territory indicated a fall of 0.2 per cent from the March quarter, which followed a decrease of about 1 per cent from the revised December quarter growth of 2.3 per cent.

Housing Industry Association senior economist Shane Garrett said the Canberra market had not performed as strongly as other cities, which was likely due to the looming federal election and the concerns over job shedding in the capital.


This was “dampening down people's willingness to purchase”.

But he said the market should record a stronger performance following the anticipated interest rate cut today and in the months after the election.

“Canberra is a little bit slower than the rest of Australia but they're pretty strong figures overall,” Mr Garrett said.

“I think the last time we got growth like this was in the stimulus following the GFC.”

The data issued on Tuesday showed that nationally the eight capital cities recorded a 2.4 per cent rise in house prices for the quarter and 5.1 per cent for the past year.

Annually house prices rose in Perth (11 per cent), Darwin (7.7 per cent), Sydney (6.1 per cent), Brisbane (3.7 per cent), Melbourne (3.3 per cent), Hobart (1.2 per cent) and Adelaide (0.6 per cent) - Canberra recorded 2.6 per cent.

The ABS report differs from those recently issued by Australian Property Monitors and RP Data as it only considers established homes for the index and does not include units.

Mr Garrett said it would take about six to nine months to see an improvement in the market as interest rate reductions kicked in.