New figures reveal Canberra's soaring house prices: Andrew Wilson

Canberra houses prices have rebounded strongly following a subdued start to the year and are now growing at the fastest rate of all the capital cities

Latest Domain data reveals the Canberra median house price surged by 3.1 per cent over the June quarter to a new record high of $654,306. Next highest increase was Sydney where house prices also rebounded strongly over the quarter – up by 2.4 per cent to again exceed the million dollar mark at $1,021,968.

Canberra house prices have now increased by 4.8 per cent over the past year – second highest only to Melbourne where annual prices increased by 7.4 per cent.

Although Canberra house prices increased sharply over the June quarter, unit prices continue to fall – down by 1.6 per cent to $399,505 and follows a fall of 2.5 per cent over the previous quarter.

Canberra unit prices have now fallen by 4.4 per cent over the past year and are the lowest since the December quarter 2009. High levels of new apartment construction over recent years continue to move supply ahead of demand.

Gungahlin was the fastest growing Canberra region over the June quarter with house prices increasing by 3.7 per cent to $565,000. Next highest was Belconnen, up 3.0 per cent to $510,000, followed by Woden Valley steady at $740,000, Weston Creek down 0.4 per cent to $578,000, Tuggeranong down 1.0 per cent to $496,000 and Canberra Central where the median house price fell by 2.1 per cent over the quarter to $785,000.

Results for Canberra region unit prices were mixed with Weston Creek increasing by 3.7 per cent over the quarter to $427,715 followed by Canberra Central up 0.8 per cent to $475,500, Tuggeranong up 0.5 per cent to $385,000, Gungahlin down 1.3 per cent to $370,000, Woden Valley down 1.3 per cent to $370,000 and Belconnen where unit prices fell sharply by 6.7 per cent over the June quarter to $370,000.

Lower interest rates and restored and still rising confidence continue to support house price growth in the Canberra market. With the prospect of further falls in interest rates and an improving local economy, the likelihood is that prices growth will continue through the remainder of the year.