Andrew Wilson: Canberra house prices show strong growth

The Canberra housing market reported strong prices growth over the June quarter following a subdued result over the previous March quarter. 

The local market, however, continues to reflect solid underlying buyer and seller confidence with the prospects of continual prices growth through to the end of the year.

Canberra house prices increased by 4.8 per cent over the past year, second highest to Melbourne, where annual prices increased by 7.4 per cent.

The capital’s fastest-growing suburbs for house prices over the year ending the six months to June were led by Amaroo, with an increase of 24.5 per cent for a median of $623,000; followed by Deakin, 21.7 per cent ($1.19 million); O’Connor, 19.6 per cent  ($975,000); Downer, 17.2 per cent ($732,500); and Yarralumla, up 14.9 per cent ($1.3 million).

The highest house price medians in Canberra over the six months ending June were Yarralumla, $1.3 million; followed by Deakin, $1.19 million; O’Connor, $975,000; Ainslie $870,000 and Chapman $860,000.

The city’s lowest house price medians over the six months ending June were Charnwood, $400,000; Banks, $421,000; Macgregor, $441,500; Theodore, $444,500; and Isabella Plains, $446,250.

Low interest rates are a key catalyst for robust auction markets and rising home prices. Next week the Reserve Bank will meet to decide the direction of official interest rates over August. 

Latest inflation data released by the Australian Bureau of Statistics for the June quarter has revealed another low underlying rate of 1.7 per cent, strengthening the case for another cut sooner rather than later.