South-west Canberra property values surge as inner-north declines
New data from the ACT Real Estate Institute reveals a stark divergence in Canberra's property market, with the south-west region experiencing a surge of over 18% in median house prices over the past year, while the inner-north saw a decline of 2.5%. The figures, released on Tuesday, underscore shifting buyer preferences amid changing work patterns and lifestyle priorities.
South-west leads growth
The south-west region, encompassing suburbs such as Weston Creek, Molonglo, and Woden, recorded a median house price increase of 18.3% to $1.12 million. According to the institute's president, Maria Edwards, the area's appeal lies in its newer housing stock, proximity to nature reserves, and relative affordability compared to established inner suburbs. "Buyers are increasingly seeking value and space, and the south-west offers that in spades," she said.
Inner-north values slide
In contrast, the inner-north—including suburbs like Braddon, Turner, and O'Connor—saw median house prices fall by 2.5% to $1.45 million. The decline is attributed to a combination of rising interest rates, reduced buyer demand, and a shift towards more affordable regions. "The inner-north has been a hotspot for years, but now we're seeing a correction as buyers look elsewhere," Edwards added.
Unit market shows mixed results
The unit market also displayed regional variations. South-west unit prices rose 7.2% to $620,000, while inner-north units fell 1.8% to $510,000. The data indicates that the broader trend of decentralisation is affecting both houses and units, with buyers prioritising space and affordability over proximity to the city centre.
Impact of remote work and interest rates
Real estate analyst Cameron Kusher noted that the shift is partly driven by the enduring popularity of remote work. "People no longer need to live close to the city for work, so they're seeking larger homes in outer suburbs," he said. "Combined with higher interest rates, this is reshaping the market." The Reserve Bank's recent rate hikes have reduced borrowing capacity, pushing buyers towards cheaper areas.
Outlook for the Canberra market
Looking ahead, Edwards expects the divergence to continue. "We may see further softening in high-priced inner suburbs while growth in the south-west and other affordable regions remains steady," she said. However, she cautioned that overall market activity could slow if interest rates rise further. The institute's data also showed that the number of property sales in the ACT fell by 12% year-on-year, reflecting broader market caution.
