Slow, steady growth continues for Canberra property market

Canberra real estate values sustained another small rise in April, continuing the city’s strong market recovery and growing buyer confidence.

The CoreLogic Hedonic Home Value Index, released on Wednesday, shows property values in Canberra rose by 0.2% in April and a full percentage over the quarter, netting annual growth of 2.1%.

The median property value is now sitting at $847,604.

CoreLogic says despite high interest rates, diminishing affordability and ongoing cost of living pressures, housing values have continued to trend higher largely due to an insufficient housing supply relative to demand.

Windrose Property Principal and Licensed Agent Sam McGregor said buyer sentiment in Canberra was positive, and there was a noticeable presence of more purchasers in the market and greater confidence.

“The market is functioning well and there is more certainty and confidence amongst buyers than we have seen in a long time,” Sam said.

“New listings are attracting a lot of interest and many properties are selling at really competitive prices. So, from where I sit, Canberra’s property market is healthy and functional. Things are moving well.”

Nationally, home values have continued to trend higher in April, with an increase of 0.6% for the month – which is on par with gains recorded in both February and March.

Perth led the country with the strongest growth in April, at 2.0%, while Adelaide closely followed as prices surged by 1.3%. Sydney home values rose by 0.4%, and Melbourne was the only city to sustain a slip in prices for the month, recording -0.1%.

CoreLogic Research Director Tim Lawless said an unexpected rise in inflation by 1.0% in the March quarter had led to speculation that interest rates could stay ‘higher for longer’.

Tim said almost every capital city was recording stronger growth conditions across the lower value range of the market.

“The shift towards stronger conditions across lower value markets can also be seen between the housing types, with growth in unit values outpacing house values over the past three months,” he said.