What Growth Has Canberra Real Estate Witnessed In Last Two Years?
In the last two years, Canberra median home prices in more than one-fourth of Canberra’s suburbs have witnessed higher home sales, above $1 million (higher than ever-before).
Since April 2019, the Australian housing market’s unflattering growth has been marked by record-high month-on-month. This might leave first-time home buyers in grim amid the booming market. And, this trend doesn’t seem to die any time soon.
Statistical comparison for a few suburbs
Canberra, Australia’s capital, has experienced the home cost soaring by almost 30% over the last 12 months. In most Canberra suburbs, the annual million prices have hiked by more than 20% from 2019 to 2021.
Prices in Hobart in Tasmania leaped more than 28% over the year span.
In the Deakin suburb of Canberra, the price rise has been as high as 40%.
The most populous city of Australia, Sydney, experienced the median house prices reach a benchmark of A$1,410,133 gaining more than A$1,200 a day over the last three months.
Hawker suburb during January 2019 had the median price of the house at $732,933, which increased by 37.4% to $1,006,878 in Feb 2021.
Except for Hobart (with around 28% hike), all the other capital cities across Australia have experienced house price hikes at a much faster rate than expected in the last two years.
The reason behind this boom has been explained as record-low interest rates. However, the Canberra growth drivers (discussed below) distinguish it from Australia’s other real estate markets.
Some prominent reasons for the Canberra market to witness an unprecedented hike
1) Throughout the pandemic and coronavirus, Canberrans have maintained their jobs specially engaged in public sectors and the related industries; therefore, the home price hike failed to die.
2) Canberra is a popular area with people having relatively high incomes, and they have been saving it, not spending much on holidays. This gives them the economic power to invest in property when the mortgage rates are meager.
3) There is a massive gap between home supply and demand as the number of listed properties in Canberra in April 2021 is 26% low compared to previous years.
4) Due to a scarcity of options for home buyers, most properties put up for sale at options are immediately snapped up, even at a higher price.
5) Canberra clearance rates are the highest compared to any other capital city. The final average clearance rate witnessed in 2021 is around 93% making Canberra real estate a sellers’ market.
All across north Canberra, with Amaroo, Palmerston, Casey, and Nicholls, there has been a rise of at least 10% in the median sale price of properties. Although, Scullin is an exception to witness a drop in the home price of more than 10% year-on-year.
The reason for the price rise in some suburbs of Canberra is that people are more inclined toward shifting in townhouses than smaller units during the pandemic. Oxley, in the heart of the Tuggeranong Valley, has recorded the most significant increase.
Even the median rental price has risen about 18.4% over the last two years.