Canberra market continues to ‘punch above its weight’: Weekly market wrap with Sam DodimeadBack
Canberra market continues to ‘punch above its weight’
One of the best parts of Canberra’s property market is the relatively consistent growth in values. This minimises a lot of the risks associated with other property markets, allowing purchasers to enter the market when they can afford to rather than trying to guess timing of boom and bust cycles.
Since 2005, Allhomes ACT Property Report shows the median price of houses has increased every year except in 2012. Median prices of units have gone up in 13 years, only declining in 2006, 2015 and 2018. To put this in perspective, in 2015 when median unit values decreased most, they fell by $5,100 or 1.21%.
CoreLogic’s head of Australian research, Eliza Owen, recently wrote “in the ACT, there is a high level of divergence between capital growth in houses and units”.
“House values across the ACT were at a record high in July 2020, having increased 8.5% over the year. The median house value was $721,912 at July 2020. Unit values were 3.6% below the record high, where the value of the unit market peaked in May 2010.
“However, units have also followed the recent house market upswing, sitting 2.7% higher over the year. The median unit value across Canberra was $445,135.”
The divergence can be explained by there being more opportunities to horizontally subdivide airspace than there are to create new suburbs. Town centres across Canberra have had exponential growth in their resident populations. Gungahlin, Belconnen, Dickson, Phillip and Greenway have changed significantly during the last decade.
Nationally, Canberra’s property market continues to punch well above its weight. Reporting auction results from capital cities nationally, CoreLogic found “there were 632 Sydney homes taken to auction this week, returning a preliminary auction clearance rate of 71.9%. This was an improvement on last week’s preliminary figure of 67.8% which later revised down to 61.9% at final collection. Volumes were a higher 668 last week across the city, however. One year ago, a lower 503 Sydney homes were taken to auction returning a higher success rate (78.1%)”.
“Canberra continues to be the standout performer with 87.8% of auctions successful this week at preliminary collection. The city does only account for a small portion of overall auctions, however.”
Weeks of exceptionally strong auction clearance rates indicate dynamic conditions for both buyers and sellers of properties in Canberra.
Weekly Facebook Live series
Each Saturday at 9am, I host a Facebook Live for Canberra Weekly to answer your property questions. This week’s topic is Property Management with Courtney Baker, head of property management at Blackshaw Real Estate. You can email questions to firstname.lastname@example.org with ‘Facebook Live’ in the subject line, and tune in via the Canberra Weekly Facebook page.
With Sam Dodimead, local property professional and host of Canberra Property Podcast where you can get to know the consultants contributing toward deliver of new buildings. Stream from wherever you listen to podcasts.
You can check out the market wrap from last week here.
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