Canberra

The Smartline Report – June Edition

The month in review: Canberra

By Herron Todd White
June 2015

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 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 are expected to remain soft plus those properties situated in less sought after locations or providing inferior accommodation.

In the 2015 March quarter, Herron Todd White research shows the median prices for standard housing and medium density housing at $560,000 and $410,0000 respectively. A total of 1,908 sales were recorded in this quarter which is considered to be slightly below normal quarterly sales numbers with the long term average at circa 2,070 recorded sales.

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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

 

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