Seven of the top 10 ACT suburbs for home value growth all experienced increases of more than 30 per cent in the past 12 months, according to CoreLogic’s latest Home Value Index (HVI) report.
Four of the top 10 suburbs were in Gungahlin – Palmerston (34.7 per cent), Forde (32.4 per cent), Nicholls (31.9 per cent) and Taylor (29.8 per cent); two in Weston – Holder (32.3 per cent) and Waramanga (31.3 per cent); and two in Woden – Farrer (32.0 per cent) and Torrens (29.8 per cent). Also making the list were Watson (31.0 per cent) in the Inner North, and Kambah (29.8 per cent) in Tuggeranong.
And although the Australian housing market may be continuing its growth, the HVI report shows it might be finally running out of steam.
The report indicates a 0.6 per cent rise nationally in February 2022, which marks the lowest monthly growth since October 2020. In the ACT, the monthly growth was 0.4 per cent in February, marking a slowing trend in value growth.
By comparison, Canberra’s housing values experienced a 23.8 per cent rise in the 12 months since February 2021, with the average dwelling price now $909,379. Adelaide, Brisbane and Perth all recorded higher annual value growth than Canberra, and regional Australia showed sustainably higher growth rates than capital cities.
According to CoreLogic’s director of research, Tim Lawless, conditions are easing less noticeably in the smaller capitals, and it’s likely last month was the peak rate of national annual growth.
“The slower growth conditions in Australian housing values goes well beyond the rising expectation of interest rate hikes later this year,” Mr Lawless said.
“The pace of growth in housing values started to ease in April last year, when fixed-term mortgage rates began to face upwards pressure, fiscal support was expiring, and housing affordability was becoming more stretched.
“With rising global uncertainty and the potential for weaker consumer sentiment amidst tighter monetary policy settings, the downside risk for housing markets has become more pronounced in recent months.”
Some ACT suburbs saw significant annual value growth, with Palmerston recording the highest increase of 34.7 per cent.
| Suburb | Median Value | Annual Change |
| Palmerston | $954,012 | 34.7% |
| Forde | $1,225,617 | 32.4% |
| Holder | $984,814 | 32.3% |
| Farrer | $1,425,244 | 32.0% |
| Nicholls | $1,293,034 | 31.9% |
| Waramanga | $967,242 | 31.3% |
| Watson | $613,521 | 31.0% |
| Taylor | $896,799 | 29.8% |
| Torrens | $1,204,182 | 29.8% |
| Kambah | $886,013 | 29.8% |
Data Source: CoreLogic
The Covid-19 pandemic has exacerbated house prices across the country, reports CoreLogic. Since March 2020, the national housing values have risen by 24.6 per cent, adding on average $144,000 to the value of a dwelling.
CoreLogic says the growth was specifically caused by:
- record low interest rates
- improved affordability following the 2017-2019 reduction in housing values
- higher levels of housing sentiment
- a surge in household savings amid lockdowns
- an imbalance between demand and supply
- fiscal policies that supported or incentivised housing activity.
As each of these factors are beginning to lose their potency, their ability to drive up housing values declines.
Rental growth has remained reasonably firm, according to CoreLogic’s rental value index.
Both February and January of this year saw a 0.8 per cent national rise, while December 2021 saw 0.6 per cent growth.
In Canberra, the annual growth in rents for houses was the third highest of all capital cities sitting at 9.7 per cent, and fourth highest for units at 6.8 per cent.
