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Canberra records largest rise in home values

Canberra has recorded the largest rise in home values of all capital cities and remains the second most expensive place to buy a property.

The RP Data-Rismark July home value index, issued today, showed dwellings in the capital recorded a 2.5 per cent growth over the past month.

The growth is above the eight capital city aggregate of 1.6 per cent for July.

Canberra has also retained its status as the second most expensive city with a median dwelling price of $500,000, behind Sydney which stands at $570,000.

RP Data research analyst Cameron Kusher said the housing market was driving the growth in the territory as units had fallen in value during the month.

Houses increased in value by 2.8 per cent while units fell 1.6 per cent.

“It's probably a bit surprising how strong the Canberra housing market is holding up given there is a federal election coming up sometime later this year,” Mr Kusher said.

“I think most people think there's probably going to be some public sector job cuts which may have an impact on the Canberra housing market.”

But he said the trend data showed the city was performing “about middle of the rung” when compared to other capitals.

Canberra recorded 4.1 per cent over the past year which was just below the combined capitals growth of 4.9 per cent.

Houses recorded 4.5 per cent growth in this time while units fell 0.8 per cent.

Mr Kusher said while it was clear the market was in a recovery phase it remained to be seen how long it lasted.

“I don't think growth in Canberra is going to be particularly strong over the next six months and that's really just linked back to the election and then what happens thereafter.”

Nationally the July results take the rolling quarterly change in capital city dwelling values to 2.3 per cent and values are 4.9 per cent higher over the past 12 months.

 

14 comments

  • Well where are the naysayers who said the housing bubble will burst? Joe are you there? As I said 12 months ago, the best time to buy a house if you can afford it is now. and always will be now. Unless you're a rat bag 'in up and out' investor and you intend to live in the house you buy, buy whenever you can afford to.

    Gobsmackingly simple.

    Commenter
    BBA
    Location
    Banks
    Date and time
    August 01, 2013, 12:41PM
    • RP Data numbers are not particularly reliable.

      Residex (another data provider) has Canberra numbers up just 0.01% in the last 12 months. (link here: http://www.macrobusiness.com.au/2013/08/john-edwards-still-sees-slow-housing-recovery/ ).

      There are plenty of houses selling for less than they did a couple of years back. But you go ahead and swallow the property industry spruik if you want.

      Commenter
      Arrow
      Date and time
      August 01, 2013, 3:23PM
    • Arrow - so you want me to believe the data you like but data you don't like should be dismissed. Gotcha. Keep paying rent mate.

      Commenter
      BBA
      Location
      Banks
      Date and time
      August 02, 2013, 7:50AM
    • Yeah of course BBA, housing boom around the corner, blocks going up to $500k, average house $1mil, all in line with the massive increase in wages to support the inflated bubble repayments.
      Just ask the people with units on Flemington Rd in Gungahlin how easy it is to rent a box out.

      Commenter
      TheJoker1214324
      Date and time
      August 02, 2013, 9:25AM
    • BBA,
      but you think we should believe yours?

      My managed fund went up 30% last year, that renting and building a bigger house deposit is looking great.

      Commenter
      Freddie Frog
      Date and time
      August 02, 2013, 1:42PM
  • Not surprising. Canberra has strong economic fundamentals overall. The doomsdayers are wrong again. Canberra is quite a different place and less reliant on one sector (the PS) as it was in 1996 and the election will prove to be a minor bump. The ACT remains a very strong place to buy property.

    Commenter
    FJ1970
    Date and time
    August 01, 2013, 12:41PM
    • It is certainly true that on average people are paid quite well in canberra. And people are always happy to see the value of their home going up. But for teachers and retail staff and many of the other hard working average salary workers the current prices are not realistic. So prices may continue to rise but civil society does not do well with a peasant class. So wish or allow or promote higher real estate prices (without the requisite salary increases) at your own peril. Your comfortable now. Enjoy it while it lasts but don't be surprised when it ends.

      Commenter
      openeyes
      Date and time
      August 01, 2013, 10:00PM
  • So why do the RBa keep lowering interest rates? Are they oblivious to house price inflation or do they purposely fuel asset bubbles

    Commenter
    Stavros
    Date and time
    August 01, 2013, 1:01PM
    • Lowering interest rates is done for the NATIONAL economy, not just Canberra. Look over your fence Stavros, it's a big country.

      Commenter
      XR
      Date and time
      August 03, 2013, 1:26AM
  • So all those "New Prices" listed on the main Canberra real estate website are "fictional"? That glut of property sitting out at Wright, Bonner, Casey, Forde, Coombs and Googong - well, it's risen in value as well?? Obviously there are some vested interests out there to prompt this type of article, but the truth - I know, something rare in real estate reporting - but the truth is out there! Ask all those people who bought post 2007 who are selling at a loss now just how fine and dandy the Canberra property market is at the moment. Oh, and for anyone still thinking that Canberra prices have actually risen, please take the time to look at how they calculate the figures. Lots and lots of people in the inner south (i.e. SES employees who KNOW what's coming), have been selling up in droves over the last few years. That pushes up the value of total sales. Then - pure genius this is - the powers that be divide this figure by the number of houses sold and go, "Woo hoo! House prices have risen!" Yes, and the emperor has no clothes!

    Commenter
    Dernancourt
    Date and time
    August 01, 2013, 6:24PM

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