The month in review: Canberra
By Herron Todd White
September, 2009
Canberra’s property market has seen mixed results over
the last three years when comparing sales activity in the
first quarter of each year. From the graphs above, it can
be seen that properties in the sub-$500,000 market tend
to form the greater volume of sales. Activity and prices for
property increased markedly throughout 2007 with strong
demand and reduced supply. The peak in the market was
observed through mid-late 2007. The decrease in sales
in the first quarter of 2008 was in response to what had
been higher interest rates. As reflected above, the impact
was most notable in the sub-$500,000 bracket. On the
other hand, sales of properties with a value greater than
$500,000 actually increased by some 8% supporting the
argument property owners on higher income levels are
less affected by increases in interest rates.
The Reserve Bank’s decision to reduce the cash rate from
March 2008 through to April 2009 to help stimulate
economic activity and the Federal Government’s
initiative of increasing the First Homebuyers Grant helped
incentivise demand. The result is reflected in the graph
for the first quarter in 2009. Once again the sub-$500,000
bracket of property provided the greatest activity with
sales increasing by near 18% compared to the same
quarter in 2008.
Currently Canberra’s property market continues to
strengthen particularly at the lower end, in response
to a supply of more affordable housing developments,
lower interest rates and Government incentives. Strong
employment, population growth and high disposable
incomes continue to provide sound fundamentals to the
Canberra property market.
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