Dwelling prices in the nation’s capital remain below their recent peak, with its median value reaching $842,677 in November, as per CoreLogic data.
That’s nearly flat with where it started 2023 and 11% lower than it was at its May 2022 peak: $947,309.
Considering inflation and government taxes, the losses are likely to be more substantial.
May 2022's peak came on the back of a 25% increase in dwelling values in 2021, but such a surge is unlikely to occur in the coming years, according to economists' forecasts.
Opinions on what might happen in the ACT’s property market in 2024 vary, but most experts foresee a slight-to-reasonable increase in the city’s house values.
ANZ, for instance, expects Canberra house prices to lift between 4% and 5% next year and 3% to 4% in 2025.
If the bank’s top line forecast comes to fruition, the city’s property values could be nearing their 2022 high in two years’ time.
But that’s not the only reason property fanatics will be keeping their eye on Canberra in 2024.
The city has recently updated its Territory Plan to allow owners of properties larger than 800 square metres to build a second residence.
“What you've got from the ACT government, I would describe that as quite visionary,” Domain chief of research and economics Nicola Powell told the Savings Tip Jar Podcast.
“They've been future thinking around, 'How do we increase the number of homes that we can offer for dwellings?',” she said.
So, where in Canberra could be worth the consideration of property connoisseurs in 2024? Here’s what experts have to say.
Median price data sourced via Realestate.com.au and is accurate as at December 2023.
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Weston, 2611
Located around 12 kilometres from the Canberra CBD, Weston is a haven for commuters who also want a family-friendly lifestyle, according to PRD chief economist Diaswati Mardiasmo.
“It is extremely well located to access a range of popular amenities and schools,” Dr Mardiasmo said.
Other landmarks found in Weston include the Australian Defence College’s Centre for Defence and Strategic Studies and the Australian Command and Staff College.
- Median price: $965,000 for houses, $680,000 for units
- Median weekly rent: $680 for houses, $545 for units
Downer, 2602
For investors, Downer could be worth keeping an eye on.
The suburb could house notable capital growth, underpinned by prime residential land, Capital Buyers Agency buyers agent Claire Corby told Savings.com.au.
“The suburb of Downer is just outside the high-density action of the newly opened Dickson shopping centre, yet has the leafy tree lined streets that so many buyers are after in Canberra,” she said.
“With proximity to the light rail line along Northbourne Ave and popular schools in adjacent suburbs, Downer is a great choice for investors."
- Median price: $1,126,000 for houses, $510,625 for units
- Median weekly rent: $680 for houses, $485 for units
Bruce, 2617
“Bruce is known as the intellectual hub of Canberra,” Dr Mardiasmo said.
“With lots of nature and gorgeous properties, it is one of the most popular areas to live in the ACT.”
Bruce is also non-homogenous and almost split into three.
To the east lies the only hospital in Canberra's north, as well as sports and technology precincts.
Bruce Ridge is home to an abundance of mountain bike trails, while in its north is the University of Canberra’s main campus, attracting a younger, collegiate demographic.
- Median price: $940,000 for houses, $467,500 for units
- Median weekly rent: $770 for houses, $540 for units
Melba, 2615
In the market for your first home? Melba, located in Canberra’s Belconnen district, might be one suburb worth considering in 2024.
“The region of Belconnen is ripe for renovation,” Ms Corby said.
“Its 1970s vibes are being updated by many, and the larger blocks on offer provide excellent value for money when you compare what Gungahlin can buy for similar money.”
Melba also features all levels of public schooling, of which there are three in Canberra (primary school, high school, and college which encompasses years 11 and 12).
“Melba offers a great location for families to put down roots for the long term,” Ms Corby said.
“The local shops are small but attracting new attention, with a focus on renewal this suburb is certainly one to consider.”
Melba is bordered by Mount Rogers, offering popular walking trails, however houses in that section of the suburb are typically more expensive.
“Instead, look closer to the schools and ovals for affordability on a quiet street,” Ms Corby said.
- Median price: $905,000 for houses, data for units unavailable
- Median weekly rent: $640 for houses, data for units unavailable
Nicholls, 2913
“Nicholls is known as the ‘Red Hill of Gungahlin’ by the locals and is a quiet overachiever when it comes to family-friendly suburbs in North Canberra,” Dr Mardiasmo said.
“There are golf courses and generous size blocks and large houses, hence reflected in the price tag.”
Dr Mardiasmo notes Nicholls is “a blue-chip suburb”, extremely safe, and multicultural with thriving Greek and Italian communities.
- Median price: $1,242,000 for houses, $815,000 for units
- Median weekly rent: $750 for houses, $630 for units
Phillip, 2606
If you’re looking for an investment property, Phillip might be worth considering in 2024.
“Woden is the geographical heart of Canberra and Phillip is the centre of the action,” Ms Corby said.
“With many cranes littering the skyline, the second stage of the light rail infrastructure project is poised to arrive in Phillip in the near future.
“There’s numerous high-rise apartment blocks for investors seeking immediate yield but careful due diligence is essential for anyone considering buying off the plan or a near-new unit.
“Quality is scarce, and for an investor seeking to hold a quality asset there are established townhouses and lower density units available in Phillip that may warrant closer attention.
“The area is gentrifying, with the dining strip outside Westfield Woden offering a choice of restaurants and lifestyle conveniences.”
- Median price: $750,000 for houses, $576,500 for units
- Median weekly rent: $597 for houses, $550 for units
Wanniassa, 2903
Finally, first home buyers might find themselves at home in the suburb of Wanniassa.
“Wanniassa is well placed for easy access into both Woden and Tuggeranong town centres, plus there’s the Erindale shopping centre for convenience nearby,” Ms Corby said.
The suburb houses two public schools, including the popular Wanniassa Hills Primary – for which buyers may want to mind the catchment zone.
“Mount Taylor offers nearby trails and exercise areas and its relative affordability attracts many hopeful Woden buyers who seek value for money.”
“The elevated parts also provide views across to the Brindabella mountains and the public bus routes are well serviced, with many private schools also extending bus routes into the area from the Inner South areas too.”
- Median price: $850,000 for houses, $482,500 for units
- Median weekly rent: $650 for houses, $480 for units
Image by Linda Xu on Unsplash.
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