The ACT may be small in size but it could be punching above its weight when it comes to long term property price growth.
The Aussie and CoreLogic 25 Years of Housing Trends report has shone a spotlight on the suburbs across Australia that have delivered the highest price gains over the past 25 years since 1993.
Canberra has certainly enjoyed strong price gains over the last quarter century. In 1993 the median house price was $157,000, or $137,000 for apartments. Today, those median values are $679,000 and $435,000 respectively.
The exciting news for ACT residents is that one Canberra suburb hit the national top 100 list. Could it be your neighbourhood?
25-year gains of over 1,000%
Taking out 19th place across Australia for property price gains is the ACT suburb of Conder, where house values have leapt ahead by 1,098% in the past 25 years. Way back in 1993, a median-priced house in Conder would have cost $48,500, but these days the median value has soared to $581,000.
But which other suburbs in the ACT have enjoyed strong value growth since 1993?
As it turns out, quite a few.
Conder may lead the field, but apartments in Campbell have dished up strong returns, to reach second place in the ACT over the last 25 years.
Since 1993 the median unit price in Campbell has climbed from $109,500 to $800,000 today – a long term value gain of 630%.
Property price gains are broad-based
A variety of ACT suburbs have performed well since 1993, and not just those in blue chip locations.
Highly sought after suburbs like Yarralumla have seen median house values rise from $241,000 in 1993 to $1.395 million today – a rise in value of 478%.
More budget-friendly suburbs have also done well.
As a guide, an apartment in O’Connor, with a median price of $99,000 back in 1993, could be worth around $520,000 today, a 25-year gain of 425%.
Loan serviceability remains healthy
More welcome news for ACT home buyers. The percentage of annual income required to service a home loan worth 80% of a property’s value is one of the lowest in Australia.
Canberrans use 27.7% of their income to service a home loan, compared to 35.8% nationally. And despite property price growth, this compares to 20.2% of income required to service a similar home loan back in 1993.
What lies ahead?
Property price growth in the ACT over the last 25 years demonstrates that values in Canberra have continued to rise strongly over the last quarter century.
Of course, past returns are no guide for the future. But estimates by CoreLogic show that in another 25 years, the median house value in the ACT could reach $2.9 million. It’s a reminder that what you pay for your place today could pale in comparison to future home values.
Discover which ACT suburbs have been the top performers over the past 25 years by viewing the full Aussie/CoreLogic 25 years of housing trends report or contact your Aussie Broker for a free copy.
You may also be interested in Australia’s top performing suburbs for long term price growth, Which Adelaide suburbs have delivered the highest price gains?, Perth ranks high in nation’s hottest 100, Melbourne scoops top 100 suburbs nationally for price growth, Hobart homes deliver annual gains of $14,000 over the past 25 years, Queensland suburbs with the highest long term gains, Which Darwin suburbs have delivered the highest gains?, and Which New South Wales suburbs are on top for 25-year price growth?