Canberra named top performing capital city

Canberra’s property market has claimed the title of Australia’s best performing capital city in the quarter to October, new data shows.

Despite not performing as well as house prices, Canberra units have still recorded growth in the past year. Picture: Supplied

The CoreLogic Hedonic Home Value Index, published on Thursday, shows property prices in the nation’s capital surged 1.5% in the three months to October, resulting in 4.3% growth in the past year.

Canberra is just one of four capital cities – including Hobart, Brisbane and Adelaide – to record growth in the past 12 months.

But property values remained stagnant in the month of October, failing to record any growth.

In the past year, house values in Canberra have surged by 5.1%, while units have not performed as well, recording a 1.5% increase.

The median property price is now $589,415.

CoreLogic head of research Tim Lawless says while dwelling values have risen in Hobart and Adelaide, the cities of Canberra, Brisbane and Darwin had not recorded growth in October, reflecting that the pace of growth had eased.

Property values in Sydney, Melbourne and Perth continued to fall.

Lawless says tightening credit conditions are contributing to slower housing activity and lower property values across Australia.

“The latest results take the annual decline across the national index to 3.5%, signalling the weakest macro-housing market conditions since February 2012, with our Hedonic Home Value Index reporting a 0.5% fall in dwelling values nationally in October,” he says.

“With such broad-based weakness in housing market conditions, it’s clear that tighter credit availability is acting as a drag on housing demand and impacting adversely on the performance of housing values across most areas of the country.”

This article was originally published as Canberra named top performing capital city by www.realestate.co.au and is written by Nicole Cox.

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