By Meredith Clisby
(The Canberra Times)
Home values in Canberra rose by the second smallest amount of all capital cities over the past financial year, data shows.
The RP Data-Rismark home value index, issued on Tuesday, shows Canberra home values increased by 2.9 per cent over the year.
This was just higher than Hobart, with 2.5 per cent growth, and the same as Adelaide. Sydney registered a 15.4 per cent rise, Melbourne 9.4 per cent and Brisbane 7 per cent.
The increase in value in the territory was 7 percentage points less than the combined growth of 10.1 per cent in capital cities. The index shows Canberra recorded a rise last month of 0.5 per cent and was behind Sydney (1.7 per cent), Melbourne (1.8 per cent), Brisbane (1.3 per cent) and Perth (1.2 per cent).
House values in the territory increased by 0.6 per cent and unit values fell by 0.6 per cent.
Canberra’s rental yield at 4.2 per cent for houses and 5 per cent for units remains relatively strong compared with other capitals.
RP Data senior research analyst Cameron Kusher said the Canberra market had experienced moderate growth over the past year but there had been signs of weakening in the past three months. “I think that’s not really unexpected following on from the budget, and we’ll probably see more of that over the coming months,” he said.
“Obviously that’s a reflection of the weakening consumer confidence … but also the likely impact of job losses in the Canberra housing market and what that will do to it.”
Mr Kusher said Canberra homes would probably record low growth or slight falls in value over the rest of the year, depending on how quickly the outcomes of the budget started to affect the market. “I certainly think confidence-wise people are not going to be overly confident going and purchasing Canberra property at the moment,” he said.
Mr Kusher said the market nationally was experiencing a slowing of growth similar to Canberra but not to the same magnitude.
He said home values grew by 3.3 per cent in the first six months of last year and had grown 3 per cent over the same period this year.
But he said it was unlikely the carried-over momentum would continue for the rest of the year because of falling consumer confidence.