Canberra's 2015 residential property wrap: rising house prices and low interest rates

The year 2015 was a good one for Canberra property with suburb records smashed, median house prices rising and low interest rates luring buyers to the market.

According to Allhomes’ latest data, the median house price stands at $613,750 – a rise of 5.7 per cent over the past year. Ainslie, Mawson, Kaleen and Nicholls are among the suburbs that recorded sales records in 2015.

“It’s been a good, solid market,” Real Estate Institute ACT president Frank Pompeani says.

“There’s been good opportunities for sellers to maximise their results and for buyers to enter the market.”

The year started with a strong level of activity from many buyers forced onto the market by the Mr Fluffy saga.

“People realised they had to make a decision to move into a new home,” Peter Blackshaw Real Estate Woden and Weston Creek director Shane Killalea says.

“We saw lots of sales in both the established and new residential market, especially in suburbs such as Molonglo. The good news is that a lot of people from the Woden Valley and Weston Creek who had been affected by Mr Fluffy have moved into something that’s new with a good energy rating and it’s a problem that will never arise again.”

LJ Hooker Manuka agent Stephen Thompson says the market grew stronger as the year progressed and he has seen the level of inquiries increase for quality family homes above $1 million.

There’s a shortage, he says, particularly in the $1.2 to $1.4 million range and strong results have been recorded at auction.

Land sales have also been competitive, with 77 blocks in Moncrieff selling in less than three minutes in November.

“This reflects that land is at an all-time premium in Canberra, there’s not a lot of it and it’s going to keep real estate prices higher,” Mr Killalea says.

Harcourts real estate agent Jeremy Maher says he’s seen a trend towards new or immaculate homes, as opposed to the renovators’ projects that have performed strongly in recent years.

He says the four-bedroom en suite home remains the most popular request among buyers.

Frank Pompeani says one of the big trends of the year was an increased demand for single-level homes.

“We’re seeing a lot of buyers in their semi-retirement and retirement years opt for single-level homes for the next phase of their life,” Mr Pompeani says.

Mr Killalea believes 2015’s strong results will continue into the new year, with interest rates and unemployment rates expected to remain low.