Ray White Belconnen

At this stage, Canberra’s house price growth is looking unstoppable. Government employment continues to grow and that has a direct impact on other parts of the economy. In June alone, prices for houses increased by 2.7%. In August, Canberra became the second capital city (after Sydney) to achieve a $1 million median. For house price growth to slow rapidly, it would take a significant hit to employment growth (unlikely) or alternatively an increase in interest rates. Housing markets are sensitive to the cost of finance. Interest rates will rise at some point and this is why the recent release of the June quarter’s inflation rate was so important. It was no surprise that inflation moved past the Reserve Bank of Australia’s inflation target of 2-3% to hit 3.8%. For now, this is not a cause for alarm. Investing in Canberra makes sense as it’s a strong market and the outlook for rental growth is positive. Whilst Canberra has land tax, because the property is leasehold investors can claim their stamp duty as an upfront tax deduction making property investment even more appealing. We are not seeing the same spike in volume of properties coming to market that we would usually see as we move into Spring. Competition from buyers is fierce and with low stock it means sellers who come to market now are achieving above expectation prices. Buying, selling, investing, be it your first home or upgrading – I invite you to get in touch and experience the Ray White difference for yourself. Andrew Lonsdale Senior Sales Agent, Ray White Canberra WHAT’S HAPPENING IN OUR MARKET?