Canberra house prices record highest growth for August
The nation’s capital made solid ground with property values surging in August, netting the highest growth for any capital city in Australia.
New data released by CoreLogic on Monday shows Canberra recorded 0.5% growth in dwelling values in the month, fuelling a 0.4% increase for the quarter to August and an overall 2.3% boost in the past year.
It was just one of three Australian capital cities to record growth in dwelling values in August. Adelaide and Darwin also experienced price increases.
Houses prices in Canberra grew by 0.5% in August to result in a 3.4% upswing in the past year. This compares with units, which increased 0.7% in the month, resulting in a dip of 1.1% in the previous 12 months.
The CoreLogic Hedonic Home Value Index shows the median property price in Canberra was $593,886 in August.
CoreLogic Head of Research Tim Lawless says the weak housing market conditions are broad-based.
“Weaker housing market conditions can be tied back to a variety of factors, foremost of which is the tighter credit environment, which has slowed market activity, especially amongst investors,” Lawless says.
“Fewer active buyers has led to higher inventory levels and reduced competition in the market. Collectively, these factors have been compounded by affordability challenges, reduced foreign investment and a rise in housing supply.”
The CoreLogic report cited higher mortgage rates, tight credit and lending conditions by banks; and a federal election on the horizon as “a few wildcards that could create some headwinds for housing market conditions”.
Across the country, Melbourne and Perth were tied for the unenviable title as the worst performing capital city in August, with each experiencing a drop in dwelling prices by 0.6%.