Canberra house values fell by 1.2 per cent in January, indicating further easing in the rate of decline.
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The latest property data by CoreLogic revealed the median house value in Canberra dropped to $951,054 for the first month of the year.
Unit values declined by 0.4 per cent to a median of $600,970.
Dwelling values - combining houses and units - dropped by 1 per cent in January, compared to 1.2 per cent falls in December and November.
The figures show the rate of decline in Canberra's property values is "losing some momentum", CoreLogic research director Tim Lawless said.
"Just looking at the quarterly numbers for Canberra, it looks like the worst of this downturn was recorded through the September quarter when dwelling values fell by 4.4 per cent across the ACT and our quarterly rate of decline is now back to 3.4 per cent," he said.
Mr Lawless said it was a similar story across most capital cities.
National home values fell 1 per cent in January, marking the smallest month-on-month decline since June.
Canberra's gross rental yield was unchanged at 4.1 per cent, coming in slightly higher than the national average of 3.9 per cent.
The recent decline in home values came at the right time for business partners John Lin and Rulin Chang, who had been looking to buy an investment property for more than a year.
The pair purchased a house in Griffith late last year.
Mr Lin said he noticed a decline in house prices, which allowed them to purchase an older home in a more "premium suburb".
"In the very beginning we were just looking at some cheaper suburbs like Belconnen and Tuggeranong, somewhere like that," he said.
"But I realised, okay, as the interest rate is going up, the housing prices are dropping down a lot ... so why not buy in a premium suburb?"
Mr Lin said the house would require some renovations and gardening work before it is ready for tenants.
"We're definitely going to knockdown rebuild in the future when we've got enough savings," he said.
"But the only tricky thing for us is the interest rate is a bit too high.
"So we will have to do some [renovations] then just lease it out."
Buyers faced with lower than normal stock levels
CoreLogic data showed Canberra was experiencing a significant slump in the volume of new property listings.
For the three months to January, new listings were down 19.5 per cent compared to the same period last year and down 8.1 per cent on the previous five-year average.
Fewer homes on the market was normal for this time of year, Mr Lawless said.
"Such a low number of new listings implies most home owners don't need to sell, rather, they seem to be prepared to wait this downturn out," he said.
"This trend of lower than normal levels of new listings has been persistent through spring and early summer and looks to be continuing into 2023."
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Curtis Dong, real estate agent at Canberry Properties Gungahlin, said he expected more listings to hit the market in a few months.
Fewer listings meant buyers were showing strong interest at auctions, he said.
"I just did an auction last weekend ... more than 50 or 60 people came to the property on auction day," he said.
"We achieved a result that was a little bit more than my vendor's expectation."
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