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House prices tipped to hit record this year

Canberra’s property market is on track to set records for house prices this year, a new report has predicted.

Median prices for houses and units in the capital increased during the December quarter, figures issued by Australian Property Monitors showed on Wednesday.

The house price report – based on a sample of prices – said price rises for both property types were above the national rates of growth over the quarter.

House and unit prices increased 2.1per cent and 3.8per cent respectively.

However, the median unit price fell 0.6per cent last year, while the growth in house prices was less than the national average at 0.7per cent.

Australian Property Monitors senior economist Andrew Wilson said Canberra’s prices were now below the city’s median house price peak, but that could change over the coming months.

“On current trends, Perth, Canberra and Darwin can be expected to achieve their record house prices sometime in 2013,” he said.

“Although local factors still predominate housing markets, the general improvement to affordability and confidence as a consequence of record low interest rates will fuel increased buyer activity and confidence.”

The median house price for Canberra was $566,003, the third most expensive of the capital cities behind Sydney and Darwin.

The median price of a Canberran unit was also cheaper than Sydney and Darwin, at $415,194.

It was also less expensive than the national average of $417,123.

17 comments

  • So one quarter of growth can now be defined as a 'trend' and therefore can be extrapolated over the future year? Are we to apply the same rules when we get negative growth over a longer period - such as Dec '11 to Jun '12 / Sept '12? From this reasoning we can assume the ASX will be up 120% this year given its 10% growth in January!

    This is also contractictory to Mr Wilson's growth predicitons for canberra 2013 - he puts growth at 0%-3%. Which is it to be?

    Commenter
    curious_george
    Date and time
    January 31, 2013, 8:48AM
    • Are you serious? Middle class welfare gone, global economy tanked, China printing cash like the USA and the magic housing market will take off, considering the next set of retirees getting ready to down size?

      Commenter
      TheJoker1214324
      Date and time
      January 31, 2013, 8:51AM
      • I can make a prediction too. Canberrans will hunker down until after the election. The fear of slash and burn from a change of government will slow the market.

        Commenter
        WorkingMum
        Location
        Canberra
        Date and time
        January 31, 2013, 9:00AM
        • Exactly correct, The Canberra and surrounding housing market has just been snap frozen with the anouncement of an election with every property now for sale effectively with-out a known resale value for the next two years.....particularly the upper mid to top end.
          Buyers will now wait if they can until after the election when there will more than likely be some 'structural adjustments' to the numbers employed in the public service and the resulting urgent sales.
          Unless the Gillard-Green's government gets re-elected.......and pigs might fly backwards.

          Commenter
          dusty
          Date and time
          January 31, 2013, 10:23AM
        • WorkingMum, I think you hit on the head.

          Commenter
          OLD DOG
          Location
          ACT
          Date and time
          January 31, 2013, 10:33AM
      • Ok so just how are people meant to afford one of the 10,500 new dwellings mentioned in CT 28 January 2013 with ripoff prices??

        Commenter
        farnarkler
        Location
        Canberra
        Date and time
        January 31, 2013, 9:29AM
        • Contradicts other CT reporting from earlier in the week.

          Sad face.

          Commenter
          Outraged of Palmerston
          Date and time
          January 31, 2013, 9:29AM
          • Don't believe any of this. I bought a one bedroom unit two years ago for $325K. Identical units in the same complex are now selling for between $290K and $300K. Thats the real market, not these reports produced to promote a certain agenda.

            Commenter
            rdr
            Date and time
            January 31, 2013, 9:54AM
            • ouch. At least you have enjoyed your property for 2 years I suppose, think of that.

              Commenter
              WotTha?????
              Date and time
              January 31, 2013, 10:34AM
          • As a seller in one of the newer northern suburbs, I can say without a doubt that this article is rubbish. I have had to cut my asking price twice, and now if I can sell, it will be at a loss. Lots of recreational lookers, but no serious and qualified buyers out there.

            Commenter
            bgrffin1001
            Date and time
            January 31, 2013, 10:29AM

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