Canberra house prices down 1.1 per cent in April: RP Data-Rismark index
New property figures show Canberra home prices dropped in April, in contrast to a slight increase nationally.
The RP Data-Rismark Home Values Index shows Canberra home values dropped by 1.1 per cent last month.
Houses were down 1.2 per cent while units dipped by 0.1 per cent.
Over the three months to April, Canberra dwelling prices rose 0.2 per cent – the weakest increase of all capital cities.
Nationally, prices increased 0.3 of a per cent in April, to take the quarterly increase to 2.6 per cent.
Tim Lawless from RP Data says Canberra’s market is softening.
“It’s definitely a trend that’s developing, so I’d be very surprised if we did see a change in the direction of that trend,” he said.
“It’s not indicating that values across Canberra are plummeting by any means, they’re simply slipping at a time when most other capital cities are showing modest to quite strong growth.”
Mr Lawless says expectations of a tough federal budget are cooling prices.
“It really comes back to the shakiness we’re seeing in confidence levels and the uncertainty across the Canberra labour market which is very much intertwined with Government decisions around fiscal policy,” he said.
Rental markets are also softening in the capital.
“Apartment rents are starting to taper backwards whereas house rents are still showing signs of subtle growth,” Mr Lawless said.
“Rental yields for investment in Canberra are still above the capital city average…but as we do see rents in the unit market start to slip more than what values are, that suggests we will also see those yields start to erode a little bit.”
Nationally, Adelaide posted the strongest gains in the month (2.1 per cent), followed by Brisbane and Darwin (1.1 per cent).
Melbourne prices fell slightly by 0.5 per cent.
On an annual basis, Sydney boasts the strongest price growth at 16.7 per cent, followed by Melbourne at 11.6 per cent.
The average yearly growth of the combined capitals is 11.5 per cent.
Sydney remains the most expensive city to buy a home with a median price of $680,000.