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.