Canberra's suburbs set for house price growth in 2016

It’s been a strong year for the ACT property market with most Canberra suburbs recording a median price growth.

With similar results expected for next year, 2016’s hottest suburbs include entry level areas on the fringe of the ACT, right through to prestige suburbs in Canberra’s inner south.

Domain senior economist Andrew Wilson says pinpointing the strongest suburbs is trickier in Canberra than it is in other cities.

The nation’s capital is home to a compressed market, with a higher entry point in affordable suburbs and a lower entry point in prestige suburbs, when compared to Sydney and Melbourne.

“When the market rises, it rises as a whole,” Dr Wilson says.

“Most suburbs will record price growth in 2016.”

Dr Wilson has tipped 10 suburbs, including Red Hill, Casey and Dunlop, to be among the strongest performers of the year ahead.

The median house price is expected to grow 4 per cent in 2016 and the suburbs he has selected have seen a strong level of activity throughout 2015.

REIACT president Frank Pompeani says he expects the year ahead to be solid throughout these suburbs and says they appeal to the full spectrum of buyers for different reasons.

The inner suburbs, such as Red Hill and Narrabundah, have always been popular and will continue to be sought after among high-end buyers.

The Tuggeranong suburbs, which include Richardson and Kambah, present great buying opportunities and offer more affordable options, Mr Pompeani says.

“These suburbs are around 30 to 40 years old and offer good-sized standard residential blocks and are still within 20 minutes to the city.”

Woden Valley and Weston Creek have been strong performers this year, with development underway in the nearby Molonglo Valley influencing sales in the area.

Mr Pompeani says Weston and Chifley will continue to be sought after in 2016, along with their neighbouring suburbs.

He says the Belconnen suburbs of Higgins and Dunlop have flown under the radar for some, however Higgins has started to gain new popularity among those looking for a “renovator’s delight” on a decent sized block.

Dunlop, on the other hand, is one of the area’s younger suburbs with most homes averaging 10 to 15 years old.

It provides an affordable option for those seeking modern homes, yet it’s mature enough to offer an established streetscape, Mr Pompeani says.

The most northerly entry on the list, Casey, has benefited from recent improvements to the suburb’s amenity.

“Casey has come into its own this year,” he says.

“The new shopping centre is about to be established and it offers good, entry level homes from the high $300,000s.”

While the budget and elections always play a role in Canberra’s property market, any positive or negative impact is expected to play out evenly across the suburbs.

However, Dr Wilson says the current strong level of buyer activity should continue throughout the year.

Top 10 suburbs of 2016

Narrabundah – Canberra Central

Harrison – Gungahlin

Kambah – Tuggeranong

Casey – Gungahlin

Dunlop – Belconnen

Higgins – Belconnen

Richardson – Tuggeranong

Red Hill – Canberra Central

Weston – Weston Creek

Chifley – Woden Valley