Canberra home prices fall
16 February 2016 by News DeskCanberra house price inflation has slowed, rising just 4.5% last year, while the cost of apartments in the city has fallen by almost 1%.
Canberra is following the trend of other Australian capitals such as Brisbane and Melbourne in a general property slowdown following recent record-breaking price rises.
Canberra has seen over 10% of homes in the ACT capital sold at a loss in the three months to September 2015. The average loss was $20,000 and most losses came from sale of new apartments.
“Like many cities Canberra has seen a major boom in residential construction,” says Darrell Todd, CEO of thinkingaustralia. “But there is now a growing over supply of properties, especially apartments, and prices are falling as a result.
“Over the coming year the cost of apartments is expected to continue falling, which is good news for anyone seeking to live and work in the city.”
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Recent examples of homes sales include a three bedroom property in Lyneham which, in the past five years, has fallen in value from $604,900 to $585,000.
In the past nine months the value of a typical two bedroom property in Braddon has fallen by $40,000 to $500,000. And a property in Kingston, bought in 2013 for $740,000, was last year re-sold for the same price.
The average cost of a home in the ACT capital is now $585,000. The cheapest property available last weekend was a one-bedroom top floor apartment in Braddon that sold for $330,000, according to industry observers.
“The property market is changing fast,” says Darrell Todd. “There is a growing over-supply of apartments in the city, at a time when many people are moving out into the suburbs.
“On the plus-side, this can only mean that prices are bound to fall whether you’re looking to buy or to rent.”
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