Three Canberra suburbs have joined the million-dollar club after their median house prices rose to seven figures in the 12 months to September, new data shows.
The latest Domain House Price Report for the September quarter showed that the suburbs of Narrabundah in the Inner South, and Ainslie and O’Connor, both in the Inner North, all had their median prices creep above the $1 million mark.
This brings the total number of suburbs in Canberra with a median house price of more than $1 million to seven including Campbell in the Inner North, and Griffith, Deakin and Yarralumla in the Inner South.
Narrabundah had a median house price of $1.03 million, up 12.3 per cent year-on-year. Ainslie recorded a median of $1,095,000, also up 12.3 per cent year-on-year, and O’Connor had a median house price of $1.1 million, up 17.7 per cent year-on-year.
“When I started my career in real estate 27 years ago, the Inner South was the most exclusive area in Canberra. People wanted something across the bridge but in the last 10-15 years, that gap between the Inner South and Inner North has narrowed,” said Richard Luton, of Luton Properties Manuka.
“People don’t so much choose the Inner North or Inner South, the suburbs in these regions are all considered inner-city suburbs, close to the city centre and all the surrounding facilities including the light rail.”
Mr Luton said Narrabundah, in particular, was an attractive suburb for a range of buyer groups including families, downsizers and investors.
“The growth in Narrabundah comes from people purchasing because the suburb next to it, Griffith, is a lot more expensive,” he said.
“Narrabundah has always been considered as Griffith’s affordable brother.”
According to the Domain House Price Report, Griffith is the most expensive suburb to buy a house in Canberra with a median house price of $1,467,500, up 5.2 per cent year-on-year.
James Carter, of Carter and Co, said pent-up buyer demand in Ainslie and O’Connor in the past two to three years has helped push that median house price up.
“Both these Inner North suburbs have achieved solid results and that can be a testament to its location and the urban renewal happening close by,” Mr Carter said.
“We see a lot of demand in these suburbs as you can still get a lot of value for what you can purchase, in comparison to other established suburbs that are a bit out of reach and mostly already redeveloped.”
Mr Carter noted many sellers were parting with houses they owned for decades and buyers were purchasing them, knocking them down and rebuilding a home before selling again.
“Buyers see the end-value potential in a significant knockdown, and rebuild,” he said.
“I expect these areas to continue to be in demand because it’s a few of Canberra’s oldest suburbs, there’s a certain charm to it and home owners and buyers looking to enter the area can see the value of living there.”