Dwellings in Canberra remained on a winning streak in February, with median values growing at one of the fastest rates among all capital cities, according to CoreLogic.
Canberra registered a 1.9% monthly and 9.7% annual gains in median values to $706,454, making it the third most expensive housing market next to Sydney and Melbourne.
With these recent gains in prices, will the city's growth trend be sustained over the next few months?
Sandra Howells, property valuer at Herron Todd White, said the performance of the Canberra residential property market in 2020 surprised many market watchers.
"The year definitely ended strongly, as evidenced by the continuing high auction clearance rates. Whether or not this momentum will continue in 2021 will be dependent on a number of factors," she said.
Sellers who decided not to sell last year might try to test the waters as vaccine rollout starts. This could potentially boost supply in the market.
"Adding to this, buyers will continue to be incentivised by record-low interest rates, which are expected to remain in place in the medium term,” Howells said. “If the above scenario plays out, we will see a return to the linear stability Canberra is known for.”
While market sentiment may continue to improve in the next coming months, Howells said the possibility of another outbreak occurring would derail any positive outlook in the housing market.
"While numerous measures are being taken to mitigate the likelihood of this occurring, it remains the most significant risk to the property market in 2021, as implementing a lockdown would not only stifle the current momentum but also have negative future implications, both on the commercial and residential fronts," she said.
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