Canberra suburbs record house price increases despite flat year overall

January 31, 2015 – 12:00AM

Meredith Clisby

Canberra Domain Editor

This house at 33 Macdonnell Street Yarralumla sold for $1,361,000 at auction in October.

This house at 33 Macdonnell Street Yarralumla sold for $1,361,000 at auction in October. Photo: supplied.

Several Canberra suburbs recorded strong house price growth in 2014 despite a flat performance by the market overall, new data shows.

Data from Domain Group indicates that houses in seven suburbs in the territory increased by at least 10 per cent.

The suburbs of Garran (16.2 per cent), Gilmore (14.5 per cent) and Hawker (13.2 per cent) were the strongest performers for houses for the year.

Palmerston (13 per cent), Fadden (12.9 per cent), Downer (11.7 per cent) and Yarralumla (11.6 per cent) were the remaining suburbs to record growth of more than 10 per cent.

The Domain Group data is based on the change in median price between the last six months of 2014 and the same time period in 2013.

At least 20 sales per suburb were recorded.

Two suburbs recorded a median house price of more than $1 million; Yarralumla ($1.08 million) and Griffith ($1.2 million).

Sales in the second half of the year included a home at 33 Macdonnell Street in Yarralumla, which sold for $1,361,000 at auction in October.

Domain Group senior economist Andrew Wilson said the data was a mixed bag which reflected the nature of the territory’s market.

He said the strongest performing suburbs were the middle to upper priced markets which indicated buyers finding value in a previously flat environment.

“There’s some momentum building in a market that’s perceived to be a good value market particularly for changeover buyers in the area that don’t have too many concerns about job security,” Dr Wilson said.

He said the more affordable suburbs had experienced the worst falls in house price growth as these areas generally felt the employment uncertainty and also drop in first home buyer numbers.

LJ Hooker Manuka principal Stephen Thompson said the inner south market in particular had experienced more activity and growth at the end of last year.

He said there had been a lot more depth in buyers looking for middle to higher priced homes.

“I guess with interest rates still quite low we’re finding a lot of frustrated buyers looking at the $1 million to $1.3 million range,” Mr Thompson said.

“There’s a lot of families looking in that range.”

He expected prices to grow in 2015.

Data out How your suburb performed in 2014 – interactive map

Domain Group senior economist Andrew Wilson said the data was a mixed bag which reflected the nature of the territory’s market.

He said the strongest performing suburbs were the middle to upper priced markets which indicated buyers finding value in a previously flat environment.

“There’s some momentum building in a market that’s perceived to be a good value market particularly for changeover buyers in the area that don’t have too many concerns about job security,” Dr Wilson said.

He said the more affordable suburbs had experienced the worst falls in house price growth as these areas generally felt the employment uncertainty and also drop in first home buyer numbers.

LJ Hooker Manuka principal Stephen Thompson said the inner south market in particular had experienced more activity and growth at the end of last year.

He said there had been a lot more depth in buyers looking for middle to higher priced homes.

“I guess with interest rates still quite low we’re finding a lot of frustrated buyers looking at the $1 million to $1.3 million range,” Mr Thompson said.

“There’s a lot of families looking in that range.”

He expected prices to grow in 2015.

Data out this week showed that while home values increased in the last quarter of 2014 prices were flat throughout the year.

Domain Group’s House Price Report showed the median house price increased by 1.4 per cent and units increased by 1.1 per cent in the December quarter.

But the median house price growth for the year was just 0.5 per cent, the smallest annual rise since 2011.

Units were down over the year by 0.9 per cent.

Almost all territory suburbs with more than 20 sales experienced either flat or falling growth for units during the year.

Units fell in the city and Harrison by more than 20 per cent.

Lyneham recorded a fall of about 11 per cent.

Dr Wilson said Canberra’s unit market, along with Melbourne and Brisbane, was experiencing an oversupply with high volumes of developments in inner city areas.

He expected over the medium to long term the units would be sold but in the meantime were the reason for the flat growth and fall in prices.

 

Source :The Canberra Times

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