Canberra records strong annual house price growth behind Sydney and Melbourne
31 July 2015 Meredith Clisby
Canberra has recorded the third highest increase in house prices of all capital cities in the past year a new report shows.
It is also the first time the ACT has recorded three consecutive quarters of growth since 2009 when the territory experienced a 14 per cent increase in the median house price.
The Domain Group house price report showed the median house price has increased by 5.4 per cent from the June quarter in 2014 to 2015.
Canberra's growth is behind only Sydney and Melbourne for the year.
Sydney has recorded an increase of 22.9 per cent in the past year and now has a median price of more than $1 million.
Melbourne house prices have increased by 10.3 per cent during the same time period.
According to the June quarter report Canberra's median house price was $584,684 in June 2014 and has increased 5.4 per cent to $616,313.
The median house price in the territory increased by 1.5 per cent during the June quarter, which was the fourth highest rise behind Sydney, Melbourne and Darwin.
The median price rose by 1.1 per cent over the March quarter and 1.4 per cent in the December quarter of 2014.
Domain Group senior economist Dr Andrew Wilson said restored confidence in the local housing market was likely to result in increased buyer activity over the remainder of the year.
He said high auction clearance rates so far in 2015 had been a forward indicator that the market was consolidating.
Domain Group data shows the auction clearance rate for June was 63.2 per cent, which was well above the 55.4 per cent recorded in June last year.
It was the highest June clearance rate for six years.
Dr Wilson said the higher priced properties had led the increase in price growth during the past three quarters and confidence was on the rise in the territory following a kinder federal budget.
"I think Canberra's on track to record its best year since 2009," he said.
But Dr Wilson said recent high levels of apartment construction continued to push supply ahead of demand.
Australian Bureau of Statistics data showed a surge in new units in April when 752 new dwellings were approved in the territory.
This dropped back to 164 in May.
Canberra's unit market has slumped by almost 7 per cent during the past year and fell by 6.3 per cent over the past quarter.
The median price for a unit in the territory has fallen from $410,203 to $382,350 in the past year.
Real Estate Institute of the ACT president Frank Pompeani said positivity had returned to the market and there was lots of activity from both buyers and sellers.
"I think the Canberra market is on the move, there appears to be signs of good stable, solid growth over the next two to five years," he said.
A CoreLogic RP Data report for the June quarter issued earlier this month also showed an increase in the median house price for the year but to a lesser extent.
It found the median price had increased by 3 per cent over the year and 0.9 per cent during the quarter.
23 July 2015