The Smartline Report – February Edition

The month in review: Canberra

By Herron Todd White
February 2015

The median prices as at December 2014 for standard residential ($552,000) and medium density ($415,000) housing in the ACT have remained steady over the past year. In both cases the volume of sales remained volatile but decreased to a total of 1,609 sales for the last quarter. Long term averages indicate circa 2,070 sales per quarter.

The supply of established property available to the market is approximately 2,150 dwellings as at January 2015 compared to almost 2,250 dwellings a year earlier. The precincts of Molonglo and Gungahlin continue to be the primary source of greenfield land to the Canberra residential market.

In line with the draft ACT Planning Strategy, the suburbs of Coombs, Moncreiff, Kenny, Wright and Lawson as well as Kingston Foreshore, Greenway and Flemington Road are scheduled for release of dwelling sites in 2015 and subsequent years.

Near record low interest rates and low unemployment levels have resulted in continued strength in the ACT economy and property market, particularly the residential sector. Despite market uncertainty in the lead up to the September 2013 Federal election and the subsequent restructuring and downsizing of the Australian public service in late 2013 and early 2014, the ACT property market and the broader economy have remained resilient.

The impact of Mr Fluffy asbestos contaminated homes and the eventual removal of these properties from the market will have a positive effect on the broader ACT economy. Accordingly, demand for residential property is set to increase.

Given current stock levels both for sale and rent, softening dwelling commencement numbers and increased demand levels, we anticipate the residential market in the ACT to tighten over the short term with prices to firm. Small segments of the market, including units along the Flemington Road corridor in Gungahlin and properties situated in less sought after locations or providing inferior accommodation, are expected to remain soft.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325