ACT News

Canberra sees biggest fall in house prices in Australia over spring quarter

Canberra house prices fell a steep 3.3 per cent over the past quarter, the sharpest dip across all capital cities, according to the latest report from CoreLogic RP Data.

In the past month, local house prices slipped half a percent by the end of November.

The Canberra dip was in line with capital city house price growth in the past month, where prices slipped 0.3 per cent across the country.

Only Sydney, Brisbane, Perth and Hobart showed any month-on-month increase in November, according to the latest report.

There was growth of 1 per cent in Sydney, 0.9 per cent in Perth and small increases in Brisbane and Hobart.

For the three months to the end of November, national price growth was 0.8 per cent, with values increasing in Sydney, Brisbane and Perth but falling across all other capital cities.


While Canberra house prices fell by 3.3 per cent in the quarter and Melbourne prices fell by 1.6 per cent, Sydney prices grew by 3.1 per cent, and Brisbane by 1.7 per cent.

A deluge of new-build dwelling stock, fatigue on the part of investors and first-home buyers, and broader concerns about the economy are being blamed for the slowdown, factors likely to continue into next year, according to CoreLogic RP Data's senior research analyst Cameron Kusher.

"Our view is that we'll still see growth next year, over the next 12 months, but again it's going to continue to slow," he said.

"We can't continue to grow that much above income growth [at round 2 per cent ] for all that long."

Mr Kusher said Sydney and Melbourne would continue to lead the way, although he said affordability, tightening rental yields, and a pick-up in interest in cheaper cities among investors and owner-occupiers would crimp growth rates considerably.