Property Market Update
A report released on 20 March 2017 by the Real Estate Institute of Australia (REIA) has found that residential property prices continued to rise in the December quarter 2016 across Australia.
REIA reported 545 sales of residential property in the December quarter in Canberra. In the ACT, the median house price has reached $621,000.00, which is an increase of 5.3% over the quarter and 4.2% over the previous year. The Inner South experienced the largest increase of 7.9% over the quarter and 6.3% over the previous year.
Compared to December 2015, the median house price rose for all Canberra zones but the Inner Central, which saw a decrease of 5.4%.
These figures mean that housing affordability has again worsened in the ACT, with the proportion of income required to meet loan repayments hitting 19.7%.
The median rent for a three bedroom also increased in the ACT to $460.00 per week, which represents a 9.5% increase from the previous quarter and 6.4% annual change.
The median rents for four bedroom houses in Inner South (14%) and Inner Central (12.8%) saw the biggest increases, and median rents generally increased for all sized in all zones except two bedrooms in Inner Central, which decreased by 2.2%. The vacancy rate, however, increased to 2.2%.
Rental affordability consequently has declined in Canberra and 17.6% of a family’s annual income being required to meet rent payments.
Over this same period the price for other property in Canberra decreased by 1.2% to $425,000.00, but it was steady when compared to the 2015 year. The median price for other dwellings increased only in Inner Central, while it dropped as much as 11.4% in the Inner South. There were 365 sales of other dwellings in the December quarter, with the most in Inner Central and the least in the Inner South.
The above figures show that the market has continued to be tightly contested. To stay ahead of the curve, contact BAL Lawyers who can assist you with your property transactions.
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