Canberra Property Market Update
Canberra in early 2021 is now Australia’s second most expensive property market, overtaking a Melbourne market that has been hit by reduced investor activity and extended COVID-19 lockdowns. New data from property research firm CoreLogic shows Canberra now carries a median value of $672,866, overtaking Melbourne which sits at a close $672,172.
Canberra was in a better position than other capital cities to withstand the initial impact of COVID-19. The economy has been buffered by the higher number of public sector jobs and industry’s reliant on public sector spending, with certain government departments expanding during the COVID-19 hiatus.
Economic disruption has not been felt evenly across Canberra with tourism and hospitality workers experiencing the brunt. Younger and lower-income households have been the most vulnerable to job loss or income reduction, and are more likely to rent than be home owners.
Similar results are expected for 2021, the hottest suburbs include entry level areas on the fringe of the ACT, right through to prestige suburbs in Canberra’s inner south.
However, pinpointing the strongest suburbs is trickier in Canberra than it is in other cities.
The nation’s capital is home to a compressed market, with a higher entry point in affordable suburbs and a lower entry point in prestige suburbs, when compared to Sydney and Melbourne
Canberra Property Market Overview 2021
Canberra’s property market began to strengthen last year after a long, sluggish period, and experts predict it’s just a taste of things to come in 2021.
Historically, property prices have held up well against negative economic shocks. There have been varied outcomes on the property market when faced with an economic downturn; even major share market losses or recessions have not led to severe price falls.
Canberra house prices are at record highs, numerous suburb records have been smashed, and the auction market continues to provide a robust performance. Canberra’s property market has weathered the coronavirus pandemic, the capital’s median house prices recorded the strongest annual growth in three years, according to new data.
The underlying economic conditions are just better in Canberra than the rest of the country due to relative job security. We’re seeing more investors return to the market. They are seeing that Canberra’s property market is a resilient one that doesn’t tend to have that volatility that other cities do. It’s a stable market and a sensible place to invest.
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