For the second straight year, Canberra has been left behind, recording a fall in property values for 2014.
The December CoreLogic RP Data Home Value Report also reveals Canberra to be the weakest performing capital city in the last quarter of 2014, when dwelling values slipped by 3.4 per cent. Dwelling values fell overall by 0.6% in 2014.
Canberra units were hit the hardest in the past quarter with values dipping by 4.2 per cent on the back of increased supply in the Belconnen and Gungahlin area in particular, while house values slid by 3.4 percent.
In the three months to December, the median dwelling price in Canberra stood at $520,000.
Tim Lawless, CoreLogic RP Data’s head of research has cautioned that the tale may continue in 2015, with conditions softening in the Nation’s Capital.
According to Ray White Belconnen Principal, Ben Faulks, a key factor in the performance of the unit market and entry level property was the fact that rental growth is sitting at its lowest annual rate in more than a decade.
“Whilst rents were rising there was motivation for tenants to exit the rental cycle and enter the property market themselves” said Faulks “however we are now seeing landlords and investors looking to lock in longer term tenancies at a reduced rate and we feel this is impacting on the overall level of demand for units and entry level homes from first home buyers.”
“In contrast, we are seeing continued demand in the four bedroom market, with many homeowners who have maintained repayment levels despite falling interest rates looking to use their new found equity to step up the property ladder. This is a trend we expect to continue in 2015 and we believe will be supported by the entrance of more Mr Fluffy buyers into the marketplace in the first quarter.”
To discuss the impact of these factors on your piece of Belconnen real estate, contact the team at Ray White Belconnen.