National property prices rise again while Canberra house values lag, CoreLogic home value index

CoreLogic's national home value index recorded a 0.6 per cent increase over the month, marking the first month-on-month rise since April 2022.

But not all capitals recorded an increase.

Canberra dwelling values were down 0.5 per cent for the month, driven by a 0.7 per cent drop in house values to a median of $944,809.

Canberra unit values, however, saw a 0.1 per cent increase in March to a median of $595,998.

CoreLogic research director Tim Lawless said while Canberra's house values recorded a monthly decline, it was worth looking at the quarterly trends.

"It looks like the Canberra market moved through the worst of the [downward] cycle in about September last year," he said.

"Back then we were seeing housing values falling nearly 4.5 per cent quarter-on-quarter. By the end of the March quarter that's dropped to 2 per cent."

Mr Lawless said Canberra property values were "virtually stabilising now".

"So I think that if this trend does continue then we probably will see Canberra following the other markets," he said.

Mr Lawless attributed the national rise in values to a combination of low levels of advertised homes, tight rental conditions and demand from overseas migration.

He cautioned there was "every possibility" the upward trend could reverse itself, due to factors such as movements in the cash rate.

Canberra unit values remain virtually unchanged over the quarter (down 0.7 per cent) and have only recorded a modest fall of 1.9 per cent over the past 12 months.

Mr Lawless said the resilience in the unit market was a stark contrast to previous points in Canberra's history.

"The longer-term history has clearly been the unit sector underperforming compared to houses, mostly because there was quite the phase of high-rise and medium-rise construction activity that introduced an oversupply," he said.

"I think it's fair to say that's largely or completely been absorbed now and we are seeing the unit market outperforming houses quite consistently."

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While the most expensive end of the market was driving property price increases in most of the major capitals, Mr Lawless said Canberra was following a different trend.

"At the moment it looks like affordability is really one of the major drivers of stability in the Canberra market," he said.

More affordable regions such as Tuggeranong and Molonglo saw monthly home values increase 3 per cent and 1 per cent respectively. Meanwhile the more expensive Woden Valley saw home values fall 1.3 per cent over March.

Historically the most expensive rental market in the country, Canberra has now recorded a quarterly decline in house rents (down 1.3 per cent) and an annual reduction of 0.8 per cent.

However Canberra unit rents were up 3.2 per cent.

Mr Lawless said the numbers show a possible "deflection of demand" to a more affordable part of the rental market or a return to larger household sizes.

"So potentially this is simply renters reaching a ceiling on what they're able or willing to pay," Mr Lawless said.

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