Modest price growth tipped for Canberra: Andrew Wilson
Prices growth in Canberra has been relatively flat over recent years, reflecting the impact of a declining local economy, according to the Domain Group senior economist, Andrew Wilson.
"Canberra has clearly benefited least from the sharp cuts in interest rates through 2012-13, which activated most capital city housing markets," said Wilson.
"Federal government fiscal consolidation policies over recent years have impacted the local economy through public service job losses and service cuts, and this has had a predictable impact on housing market activity."
Source: Domain Group
Over 2014, Canberra recorded modest price growth of just 0.9%, following the previous year’s 2.2% result.
"Through 2015 the Canberra housing market looks set to maintain its modest but steady performance of recent years," he said.
Source: Domain Group
Recent positive signs for the local market remain with increased auction activity recorded towards the end of 2014 and solid buyer activity early in 2015.
"Lower interest rates will feed into buyer confidence and add to the prospects of rising buyer activity," Wilson said.
"Canberra’s median house price is set to increase by between 1 and 3% through 2015."
Source: Domain Group
Domain Group tips the best performers will be the middle and upper price market sections as well as regions that experienced subdued prices growth over recent years as value perceptions drive increased changeover buyer activity.
"As usual, however, much will depend on the performance of the local economy, which has recently shown encouraging signs of improvement," said Wilson.
"Government fiscal consolidation policies remain an ever-present impediment for the local Canberra housing market."
