We’ve turned a corner: property values show greatest strength in more than a year

Canberra real estate values appear to have turned a corner, with February’s performance signalling the city’s greatest show of strength in more than a year.

The CoreLogic Hedonic Home Value Index, released on Thursday, revealed Canberra property had enjoyed some of its best growth in recent times with dwelling prices surging by 0.7% last month.

The median property price of the national capital is now $840,103, settling at 1.6% growth over the past 12 months.

Canberra’s performance for the month outstripped growth in other major capitals, including Sydney, which saw a 0.5% increase in property prices, and Melbourne with a 0.1% rise.

Australia’s best performing cities in February were Perth, with a runaway 1.8% boost to home values for the month, 1.1% in Adelaide and 0.9% in Brisbane.

Windrose Property Principal and Licensed Agent Sam McGregor said the results had shown that Canberra’s forecast recovery was translating, buoyed by a strong jobs market and increased buyer confidence amid the hold on interest rates.

“No matter how you look at it, Canberra is a very well performing market,” Sam said.

“Prices are growing. Canberra house rents have increased in the last month, unit rents have increased in the last month and property prices have increased in the last month.”

The CoreLogic report shows that since the onset of COVID in March 2020, property prices have surged by 31% in the ACT. From the peak in May 2022, housing values have gradually dipped by 6.3%.

“About six months ago, people were saying Canberra’s market was doom and gloom and today we’re here saying we’re well up from where we were,” Sam said.

“Canberra is a really strongly performing market right now. The numbers show that we have come out of 2023 and 2024 is looking different.

“We’ve said it’s been a functional market but things are getting a little faster in pace now because there is confidence on both ends coming into the market. Conditions haven’t been this good in a long time.”

CoreLogic Research Director Tim Lawless said every capital city in Australia sustained an increase in home values in February, except Hobart, which fell by 0.3%.

“Housing values have been more than resilient in the face of high interest rates and cost of living pressures,” Tim said.

“The ongoing rise in housing values reflects a persistent imbalance between supply and demand which varies in magnitude across our cities and regions.

“Potentially we are seeing some early signs of a boost to housing confidence as inflation eases and expectations for a rate cut, or cuts, later this year firm up.”