The acceleration of Canberra’s house prices has been at a historic high, hitting a $950,000 median in August, a significant increase of $250,000 since the beginning of the Covid-19 pandemic early last year.
Canberra has experienced the highest property price growth across Australia in 2021 and sits comfortably as the second most expensive city in the country, after Sydney.
Ray White’s latest market analysis, written by chief economist Nerida Conisbee, shows 21 suburbs in Canberra have now reached a median price greater than $1 million, up from just eight in 2020.
“Canberra’s price growth has been exceptionally strong and has been one of the strongest in Australia when we look at median prices,” Ms Conisbee said.
Griffith, the suburb with the highest price growth, is looking like it may snatch up the title of Canberra’s first $2 million median suburb within the next 12 months.
Canberra’s strongest price growth suburbs to August 2021
| 2020 | 2021 | Increase | |
| Griffith | $1,455,000 | $1,840,000 | $385,000 |
| Garran | $1,032,502 | $1,410,500 | $377,998 |
| Campbell | $1,155,000 | $1,511,000 | $356,000 |
| Deakin | $1,347,500 | $1,670,000 | $322,500 |
| Yarralumla | $1,451,278 | $1,720,000 | $268,723 |
| Aranda | $890,000 | $1,125,800 | $235,800 |
| Lyons | $827,500 | $1,063,000 | $235,500 |
| Mawson | $745,000 | $975,000 | $230,000 |
| Pearce | $900,000 | $1,125,000 | $225,000 |
| Curtin | $925,000 | $1,150,000 | $225,000 |
Eight of the top 10 strongest performing suburbs are southside – Griffith, Garran, Deakin, Yarralumla, Lyons, Mawson, Pearce and Curtin – with Campbell and Aranda the only northside suburbs to make the shortlist.
“I don’t see Canberra’s house price growth falling but the big unknown is what the impact will be of the most recent lending changes. It’s estimated borrowing capacity will be reduced by five per cent, so that will slow the market,” Ms Conisbee said.
Canberra’s house price growth may seem like a daunting prospect for first-time buyers, and Ms Conisbee said it will be challenging for this demographic.
“For first-time buyers, a lot are getting priced out and it’s quite stressful, especially with incentives like Home Builder being withdrawn and investors now back in the market,” she said.
“On one hand, the price growth is good for property owners but there’s a big focus being put on affordability, which also has a lot to do with things like supply of properties and planning controls. A lot of that is what keeps Australian house prices high, and that’s why we have an inquiry into housing affordability.”
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