The Smartline Report – June Edition

The month in review: Canberra

By Herron Todd White
June 2016

Near record low interest rates and low unemployment levels have resulted in continued strength in the ACT economy and property market, particularly the residential housing sector. Despite some market uncertainty in the lead up to the 2016 Federal election and possible restructuring and downsizing of the Australian public service, the ACT property market and broader economy have remained resilient.

The impact of the removal of Mr Fluffy asbestos contaminated homes resulting in increased demand and market participants for standard dwellings has had a positive effect on the ACT housing market. Accordingly, demand for residential property remains strong.

Given current stock levels 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 in less sought after locations or providing inferior accommodation are expected to remain soft.

In the 2016 March quarter, Herron Todd White research shows the median prices for standard housing and medium density housing at $575,000 and $410,000 respectively.

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 – 2016. Australian Credit Licence Number 385325

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