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777 homes

777 Homes

Why Canberra’s Property Prices Are At Par With Melbourne Or Sydney Prices

Canberra’s house prices witnessed a record high at the end of 2020. The end of 2021 has followed the same trend.

Canberra Is Becoming As Expensive As Melbourne Or Sydney

The year 2021 saw an incredible leap in the Canberra property market. Each quarter excelled the performance of the last quarter regarding property prices hike. 

According to the latest Domain House Price report, Canberra’s median house price crossed the seven-digit benchmark. It has reached to $1,015,833. In short, it indicates a massive growth of 29.2% in the housing space in a single year. This is the highest price growth in any capital of Australia.

Experts are expecting a 24% rise in Canberra’s property price by end of 2021. However. Sidney and Hobart will witness a 23% hike. And, Brisbane and Melbourne will witness a 21% & 20% rise, respectively.

Reasons Why Canberra Is Experiencing A Housing Price Boom

There are eight capital cities and territories in Australia. Out of these, Canberra is witnessing a huge housing price boom. Many are doubtful about this hike!

Certainly, there are several reasons behind the epic proportional rise in Canberra’s property market. Most importantly, these have put it at par with Melbourne and Sydney. The price rise of Canberra has left behind the larger cities like Brisbane, Adelaide, and Perth.

For example, some reasons are:-

  • Firstly, ultra-low interest rates is the primary reason fro price hike
  • Their is extreme shortage of properties for sale countrywide. 
  • The shift of interstate residents leading to population rise in Canberra. According to ABS International Migration estimates, there has been a net gain of people shifting in the Canberra QoQ in 2021.
  • Demand for better homes in the capital. Canberra homes are considered immune to lockdown.
  • Homes are on sale that are like a ‘safe haven’. And, offers a normal lifestyle amid the peak of the pandemic
  • Low unemployment rates
  • Higher than the national average incomes
  • Home auctions is becoming the most preferred home selling mode. During the 2021 in Canberra, the earlier 50% clearance rate is above 80% every month now. As a result, home sellers have stopped taking pre-auction offers. They are switching over to home sales to the auction. The demand is higher for homes in Canberra. So, every property sells fast under hammer.
  • People with well-paid jobs in higher price markets like Sydney and Melbourne, are relocating to Canberra. Subsequently, house prices are pushing further in Canberra.

 

Prediction For The Further Hike In Canberra Property Prices

According to Capital Economics Australia and New Zealand Economist Ben Udy, the Canberra housing market has been unique. If interest rate increases, house prices will likely increase by 0.5% per month or 5 to 6% per annum. But, to clariify, this is a reasonable growth rate of property prices.