A growing number of Canberra suburbs have joined the million dollar club in the past year, amid estimates that 50% of suburbs now have median property prices in the seven-figure stakes.
Latest CoreLogic data, released today, (01/04) shows Canberra has maintained a $1 million-plus median for houses, with the price hitting $1,055,812 in March. It comes as the overall median price across all dwellings edges closer to the $1 million mark, at $932,704.
In May last year, CoreLogic estimated that more than a quarter of Canberra’s suburbs had exceeded a median house price of $1 million, but McGrath sales agent Justin Taylor now believes that figure could be closer to 50%.
While premier inner suburbs like Yarralumla, Campbell, Deakin, Red Hill and Griffith have long attracted median house prices well in excess of $1 million, other suburbs including Forde, Lyons, Downer, Torrens, Mawson and Nicholls have also joined the ranks.
Mr Taylor said Gungahlin and areas north of Canberra had shown incredible growth in the past 18 months to two years and estimated more than half of the city’s suburbs were now priced at $1 million or over.
“I would say that the majority of Canberra suburbs have now tipped over the million dollar mark or are on the brink. I’d say it’s more than 50% of the suburbs of Canberra,” he said.
“In line with the majority of the market, property prices in the Gungahlin region have gone up at least 35–40% in the past 18 months.
“Many three bedroom homes are now cracking $1 million in a lot of suburbs in Gungahlin. Recently, we cracked seven figures for three bedroom homes in Palmerston, Ngunnawal and Forde and 18 months ago that would rarely happen.”
Mr Taylor said tough competition was putting price pressure on the limited stocks.
“The majority of buyers are having to search further out from the CBD because it’s getting unattainable for them in the inner south and inner north,” he said.
“For really popular areas like O’Connor, Ainslie, Campbell you’re generally looking at $1.6 million plus in those suburbs. Equivalent homes in Gungahlin are going for around $1.1 million or $1.2 million so it’s definitely more affordable.”
“It wasn’t that long ago that the majority of four bedroom homes in the Gungahlin region were $850,000 to $900,000. That’s $300,000 growth in 18 months to two years.”
Regional lifestyle locations within an hour’s commute from Canberra are also thriving real estate prospects, according to McGrath sales agent Sam McGregor.
“There’s been a definite trend in the past 12–18 months of Canberra buyers moving out toward Murrumbateman. That was definitely off the back of COVID where people realised they could work two or three days from home if they put the squeeze on the boss,” Mr McGregor said.
“That has had a dramatic impact on prices in Murrumbateman, in particular, where it’s not been out of the realm to see 30–40% price growth in the last 12 months for small acreage lifestyle properties.”
Mr McGregor said Murrumbateman properties previously priced around $900,000 were now fetching in excess of $1.3 million. Yass is also on a strong uptick, with a four bedroom home priced between $600,000 and $700,000 eight months ago now selling for $1 million.
“It’s the competition that is really pushing pricing up,” he said.
“I don’t think that buyers, agents and homeowners realise just how strong these markets are at the moment, but they are cottoning on to it and pricing is starting to reflect that.
“I’ve had a lot of inquiry from sellers in Braidwood considering selling and wanting to use a Canberra agent because they want access to Canberra buyers rather than the people who would traditionally buy there. Even people who live there realise it’s the people from Canberra who are the ones moving in.”