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Canberra market set to decline

By Vivienne Kelly
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All capital cities are now effectively reporting price gains except for Canberra, with this trend set to continue into next year, according to new forecasts.

Speaking at SQM Research’s conference last week, the company’s managing director, Louis Christopher, said Australia is set for significant capital growth in asset values, but Canberra is likely to be the exception.

“Canberra is struggling and is likely to continue to struggle,” he said. “The reality is that the Canberra market started falling earlier this year and by the looks of it, we’re going to see more job layoffs and that’s going to affect the market.

“It’s just the worst possible time for Canberra – they’ve just gone through a bit of a building boom and now demand has been falling away.”

Despite Canberra’s less than favourable outlook, Mr Christopher said he expects the capital cities’ weighted average price growth to sit around seven to 11 per cent in 2014.

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