Property prices in Canberra may see growth in 2024 albeit at a slower pace than in 2023, according to theย PropTrack Property Market Outlook Report.
Key findings from the report:
- Canberra property prices are expected to record between a 1% fall and a 2% increase in 2024.
- This forecast considers the current market trajectory, as well as predictions on housing supply, the trajectory of interest rates and the impact of rate rises to date.
- While Canberra has seen home prices lift 1.8% in 2023 as the market has rebounded, prices are still 4.49% below their March 2022 peak.
- The expectations of a weaker price performance in Canberra is due to the high volume of stock available for sale and the slowing of demand for homes.
- The total stock of properties for sale in Canberra has picked up, rising 24.2% year-on-year.
- With an increase in stock, buyer demand has eased. The number of enquiries per listing on realestate.com.au decreased 18.3% year-on-year.
PropTrack Director of Economic Research and report author, Cameron Kusher, said: โAustraliaโs
property market proved resilient in 2023. Home prices have increased 5.5% so far this year to a
record high, despite deteriorating housing affordability and interest rate rises significantly
reducing borrowing capacities.
โNationally, we expect prices to grow between 1% and 4% in 2024. We expect that a
combination of continued strong demand and limited new housing construction will contribute
to price gains, albeit at a slower pace than what we experienced this year.
โStage three tax cuts will commence in July, which will benefit higher income earners, and inturn,
could lead to increased demand for higher priced housing.
โInterest rates are now at a 12-year high, and while they remained steady in December, there is a
possibility of future increases, which could have an impact on buyer and seller sentiment.
โReflecting on 2023, a number of factors drove the home price rebound. The volume of stock
available for sale remained at persistently low levels while buyer demand also increased
significantly, fuelled by a housing shortage and strong population growth. Itโs likely these trends
will continue into 2024.โ
