Canberra house prices strong in 2015

Canberra house prices recorded strong growth in 2015, the latest data from the ABS has confirmed, reflecting other reliable measures of housing market activity.

The ABS established house price index for Canberra increased by 3.2 per cent in the December quarter which was the strongest quarterly rise reported since March 2010. Canberra established house prices increased by 7.9 per cent in 2015, the best annual result since 2009.

House-price growth in Canberra in the December quarter was the highest of all the capitals and the annual result was below only the booming markets of Sydney and Melbourne, which recorded annual growth of 15.2 per cent and 11.3 per cent respectively 

Solid house-price growth for Canberra reflects earlier Domain Group research reporting local prices rising in the December quarter by 4.3 per cent and an increase of 9 per cent in 2015.

Rising established house prices in 2015 are confirmed by ABS residential finance data revealing that the average Canberra owner-occupied home loan excluding refinancing increased by 8.6 per cent in 2015. Similarly, the total value of Canberra home lending, inclusive of both investors and owner-occupiers, increased by 10.1 per cent in the year.

Although Canberra houses prices recorded strong growth in 2015, unit prices reported only modest growth by comparison. Unit prices increased by 0.4 per cent in the December quarter to be up by just 1.3 per cent for the year.

Dr Andrew Wilson is Domain Group chief economist. Twitter: @DocAndrewWilson – My Property, 2UE Fridays, 2-3pm, Saturdays, 12.30-1pm