Global Power | Local Knowledge | Uniquely Personal

Slowdown of ACT market not necessarily linked to global economy

The slowdown in house price rises in ACT is a normal reaction to unprecedented growth in previous years.

House prices in the Australia Capital Territory have been increasing at a reduced rate for the past five years, with many people attributing this to the global financial crisis.




However, property author Cameron Kusher says this is not necessarily the case, as a slowdown in the market was always to be expected as part of its natural cycle following a decade of unprecedented growth, ABC news reports.




According to new figures released by RP Data, property prices in Canberra have been increasing by about two per cent a year for the past five years, compared to 15 per cent a year during the boom period of the late 1990s and early 2000s.




While decreased buyer confidence due to the global economic crisis may well have contributed to this, it is also not unreasonable to assume that the eventual slowdown of the market was always inevitable, as constant increases were in danger of making houses too unaffordable.




Investors should therefore not be put off entering the market, which may not be as dependent on the global economy as some are suggesting, and is in fact following its natural, healthy life cycle.



DISCLAIMER: All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact

Subscribe Now