Natalie Roberts

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Canberra 2024: October Market

Canberra’s housing market saw a slight decrease in value, with a -0.3% drop in September and -0.9% over the quarter. The annual growth rate remains at a modest 0.7%, reflecting a softer performance compared to other capital cities.

Canberra Property Price Growth

Canberra’s median dwelling value now stands at $844,882. This decrease highlights ongoing affordability challenges and lower demand compared to other markets. Price growth in the city has been sluggish, placing it among the slower-performing capital cities in 2024.

Canberra Property Market Trends

The Canberra market is marked by rising inventory and longer selling times, with the median time to sell now at 32 days. Auction clearance rates have also dipped, signaling a cooling in buyer activity. Affordability remains a key issue, especially as borrowing capacity is reduced, causing a shift in demand towards more affordable segments.

Summary of housing values since the onset of COVID in March 2020 and relative to peak levels (onset of COVID calculated from March 2020).

Canberra Property Market Forecast

  • Short-term outlook: Moderate declines are expected due to affordability pressures and increased housing supply.

  • Interest rate impact: A possible interest rate cut in 2025 could ease pressures and help property values recover.

  • Reserve Bank of Australia (RBA): Interest rate adjustments will significantly influence market conditions as higher borrowing costs reduce purchasing power.

Big-4 Banks’ Forecasts for 2024:

  • ANZ: Predicts a 5-6% rise in capital city property prices, with Brisbane seeing the highest increase (9-10%), followed by Perth (1-11%), Sydney (4-5%), and Melbourne (2-3%).

  • CBA: Expects a 5% increase across capitals, with Brisbane up 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.

  • NAB: Projects an average 5.4% rise, with Brisbane leading at 6.5%, Perth and Adelaide at 6.2%, Melbourne at 5.5%, Sydney at 5%, and Hobart flat.

  • Westpac: Anticipates 6% growth across capitals, with Perth growing by 10%, Brisbane by 8%, Sydney by 6%, Adelaide by 4%, and Melbourne by 3%.

Natalie Roberts