Australia's capital continued to shine, as it leads all of the other capital cities in terms of house price growth.
Citing Domain's State of the Market Report, Brisbane Times said Canberra's median house price jumped by 5% over the past quarter, hitting a new record-high of $753,516. This growth is the highest of all capitals excluding Hobart, where the median price went up by 10%.
Over the past year, the city recorded an 8.4% house price growth, trailing behind Melbourne at 11.3% and Hobart at 17.4%.
Domain group chief data scientist Nicola Powell attributed Canberra's robust performance to the strong interstate migration.
"There's an element of perceived value in the Canberra market and we are seeing a lot of interstate migrants come to the ACT supported by low-interest rates. When you compare Canberra to nearby capital cities such as Sydney, that price point is actually a great value," Powell explained, adding that the city's stock levels has affected its median price growth.
Domain data shows that on annual basis, the total stock in the city has been on a steady decline since March 2016.
Property Council of Australia ACT executive director Adina Cirson said Canberra's performance indicates a demand for particular types of housing: two- and three-bedroom family homes.
"There's plenty of large family homes with four or more bedrooms at one end of the market and at the other end, there's plenty of apartments. Wherever there is a higher demand in the market, there's going to be higher prices," Cirson said.
However, the Canberra housing market is not without a void to fill. Cirson said the missing middle includes people who cannot afford the higher end of the market.
"We know Canberrans are very keen on seeing a greater housing choice in the market which allows them to buy at different price points," she noted.
She argued that first home buyers are now priced out of the housing market because there are few affordable suburbs in the city.
"The unit market has an affordable entry price point compared to a house and we're seeing more first home buyers choosing to live in an apartment. "That increase in demand from first home buyers is helping to balance out the unit market," Cirson noted.Related Stories:
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