The ACT has topped the national market in housing finance for the fourth consecutive quarter and has broken a local record in the process.
According to CommSec’sState of the Statesreport released on Monday, the territory’s housing finance commitments are up 36.7 per cent on the decade average.
Based on statistics from November 2017, there were 1220 housing finance commitments for owner-occupiers in the territory. Canberra’s decade monthly average is 893.
CommSec chief economist Craig James said the figure of 1220 was a record for the nation’s capital. Related: Canberra records highest rental yield growth in nation: Domain reportRelated: Canberra and Hobart: Two underdogs that have topped the national market in 2017Related: Is Canberra on track for a bumper year?
“The figure suggests in terms of the number of commitments for home loans, the ACT is outperforming other states and territories by quite a significant margin,” he said.
“We can put it down to population growth and a strengthening job market, if you put those two together obviously there is a greater demand for homes.”
Housing finance growth was also strong in Victoria (up 25.8 per cent) and NSW (up 18.3 per cent).
“The south-east corner of the country is the highest performing at the moment,” Mr James said.
Dwelling commencements in the ACT are also up 26.3 per cent on the decade average.
“In terms of developments there’s been a substantial pick-up in Canberra,” he added.
Overall, the ACT market ranked third nationally in the CommSec report and Mr James expects Canberra’s performance will continue to go from strength to strength in the foreseeable future.
“The ACT is up onto third position regarding economic performance and it looks like it will retain that position, if not move higher,” he said.
“There’s a good degree of momentum in the n Capital Territory.”