It seems the media is in a tizz at the moment about property prices. Canberra has been highlighted as one of the capital cities where property prices are booming. Although prices in the Canberra market do appear to be slightly overinflated, so with another interest rate rise looming, are we seeing the boom before the bust?
All this speculation is being driven by the latest price guide from Australian Property Monitors. They report an annual growth figure for Canberra houses of 17.7% and units 9.7% (figures for the quarter June to Sept 07 are 1.7% and 4.6% respectively). This equates to the average Canberra house price now coming in at $485,262 and an average unit price of $339,553 – wow!