ACT house prices predicted to keep growing, defying national downturn
Canberra house prices are predicted to grow by more than 6 per cent in 2019, as the capital continues to defy a nationwide property market downturn, according to a new report.
But a declining auction clearance rate and slowing rate of housing finance commitments suggest demand might be beginning to cool in the ACT, the report from housing research firm CoreLogic and Moody's Analytics finds.
The report, published on Monday, predicts Canberra property prices will rise throughout 2019, following moderate increases in the past six months.
House values are predicted to rise by 6.1 per cent, according to the report, while unit prices are forecast to grow by 3.3 per cent.
Canberra's median house price was $672,332 at the end of 2018, up 3.6 per cent in the past 12 months, according to CoreLogic figures.
The report suggests the price rises are being driven by the overall strength of the ACT economy, which is underpinned by low unemployment and population growth.
Unemployment in the ACT has dropped to a two-year low on the back of growth in the service and construction sectors, as well as in the public service, according to the report.
"The ACT's population grew by 2.2 per cent in the year ended 2017, the biggest rise since 2012, driven by record net overseas migration," the report stated.
"Strong population growth is helping to underpin the resilience of the ACT housing market."
The report has forecast continued growth in the ACT in 2020, with house prices expected to rise by 4.8 per cent and units predicted to climb by 4.6 per cent.
Moody's Analytics predictions are more ambitious than those made by Domain, which is expecting more modest growth in Canberra's property market in 2019.
Domain's Property Price Forecast has predicted Canberra's house prices will rise by 4 per cent in the next 12 months, while the value of units will grow by 2 per cent.
The CoreLogic-Moody's Analytics report is predicting house prices will again decline nationwide in 2019, as the Melbourne and Sydney markets continue to "correct" following years of significant growth.
Sydney's housing market is expected to drop by 3.3 per cent this year, following a fall of 5.2 per cent in 2018, according to the report.
House prices are set for a steeper drop in Melbourne, with predictions values will plummet by six per cent in the Victorian capital.