Last year was a crazy high for Canberra property prices, and local agents are plugging a range of factors into their 2022 predictions.
Anthony Weston of Blackshaw Woden says the market barely paused over the Christmas-New Year break.
“Not much has changed at the moment and there is still upward pressure on prices,” he says. “But there are certainly some factors that need to be considered over the balance of the new year.”
Weston says these include a tightening of lending criteria, interest rate rises outside of the RBA, and a federal election before the end of the financial year.
“Canberra’s fundamentals, however, set it apart from other capital cities and its price growth is likely to remain strong – particularly given the current supply and demand equation,” he says.
James Carter of Carter and Co Agents says that all-important equation is something that may be further affected by a range of other considerations.
“There’s going to be an increasing transfer of wealth as older Australians retire or downsize and as estates are inherited,” he says.
“That will really bring into focus related issues like government policies on urban infill and rezoning, along with more pressure for the release of new greenfield sites.”
Carter says in the absence of any significant changes, tight supply and strong demand will continue to put upward pressure on prices.
“It’s difficult to quantify what that annual price growth might be as Canberra continues to offer significant buyer value,” he says.
- Supply: While the flow of properties onto the market remains tight, demand is likely to continue to be strong among a big pool of motivated buyers who are prepared to compete.
- Interest rates: Banks are showing an appetite for increasing fixed rates outside of the RBA. This may have a dampening effect on buyer appetite depending on the rate and frequency of increases.
- Election: A federal election can spark a temporary slowdown in activity while sellers and buyers consider the impact of either a change in government or a continuation of business as usual.
Check out our top pick of homes for sale:
This Narrabundah home first set down its roots in 1961 but has since reinvented itself as a contemporary family home with a distinct resort-style ambience.
The elevated residence, with views to the east, was renovated and extended just over 10 years ago and now packs in 283 square metres of living on the 646-square-metre block.
A clever floor plan creates entertaining, living, and relaxation options over three levels.
The lower level houses a double garage and storage. The main living level is highlighted by polished concrete floors, double glazing, floor-to-ceiling glass and hydroponic heating. Surprise features include an internal barn door and a hidden powder room.
There’s a spacious lounge room with spotted gum flooring and access to an outdoor terrace. There’s also another living room – perhaps a rumpus – towards the front of the house.
The central hub features a very sharp kitchen with an island bench, breakfast bar and generous storage. Brand appliances include a gas cooktop, electric oven and dishwasher.
There are four large bedrooms with the option of a fifth or a home office, and access to a balcony. The main offers a walk-in wardrobe and indulgent en suite.
Comfort is delivered throughout by reverse-cycle air conditioning.
There are plenty of al fresco options, with decks and terraces front and back. The undoubted star is an alluring, resort-style, solar-heated swimming pool.
Price guide: $2.35 million +
Auction: 11am, February 5
Agent: Blackshaw Woden, Anthony Weston 0439 282 508
Or try these:
Price guide: $1.675 million
Agent: Maloney’s Property, Philip Kouvelis 0412 622 420
Price guide: Circa $1.6 million
Auction: 11am, January 29
Agent: One Agency Sandy Morris, Sandy Morris 0420 380 895
Price guide: $1.3 million +
Auction: 6:30pm, February 2
Agent: Carter and Co Agents, Nik Brozinic 0400 280 728