The high house price growth suburbs for Canberra in 2020

Despite the coronavirus crisis, Canberrans are paying more than ever before for houses in the territory.

The combined median dwelling value (both units and houses) for the ACT reached a high of $626,932 according to Corelogic.

Corelogic says the combined dwelling value in the ACT has risen by 5.2 per cent since the onset of coronavirus restrictions in March.

"The combined ACT dwelling market has hit a fresh, record high value every month since September 2019," Corelogic head of research Australia Eliza Owen said.

The Belconnen suburb of Flynn had the highest house price growth over 2020, up by 15.5 per cent to $724,136, according to Corelogic.

But it was suburbs in the Woden Valley that dominated Canberra's top 10 highest growth suburbs. Hughes (up 14.6 per cent), Garran (up 14.5 per cent), Mawson (up 14.2 per cent), Pearce (up 12.2 per cent) and Lyons (up 12.1 per cent) were all in the the top 10.

Property analyst Terry Ryder of Hotspotting said Canberra's market outshined Sydney and Melbourne and attributed this to the ACT's unique job security.

He said the city was well placed economically due to a high number of Canberrans working in the public service or the health system.

"Canberra has been the outstanding performer on price among the capital cities in 2020," Mr Ryder said.

"It has produced some level of growth in house prices every month since the pandemic hit the nation."

It was a bumper year for Canberra's property market, the nation's capital had several multi-million dollar sales, including the highest recorded residential sale in the territory's history.

The house at 25 Mugga Way sold for $8 million in March.

But the property market appears to show no signs of slowing down.

SQM Research has forecast that Canberra property prices could rise by up to 9 per cent in 2021. Even in the worst case scenario, prices could rise by up to 6 per cent.

The Housing Boom and Bust Report outlined four scenarios. Canberra was forecast for growth of between 5 to 9 per cent in two scenarios, 4 to 7 per cent in another and 2 to 6 per cent in the worst case.

SQM Research managing director Louis Christopher has predicted similar growth levels for every capital city except for Melbourne.

"As 2020 draws to a close, the national housing market has responded to the unprecedented economic stimulus packages as well as record low lending rates," he said.

"Auction clearance rates have lifted since mid-year and various dwelling price measurements have started to record price rises.

"It is likely that the housing market will gain further momentum on the back of increased investor activity, especially from those who seek some sort of income yield."

But Mr Christopher said he had misgivings around long-term consequences of the stimulatory policies.

"If housing is regarded as an asset class that is not allowed to fall, Australia could have some rather serious social issues surrounding home ownership rates over the long term," he said.

"Many in the community are starting to think they cannot ever lose on housing. That the government will always be there to step into the housing market, if need be. And that is a scary idea."

Ms Owen said the market would be boosted by the low cash rate.

"Record-low mortgage rates will likely be a significant tailwind for property values, and may place upward pressure on prices through 2021," she said.

"Combined with a recovery in economic, some earlier factors considered a major risk to housing markets have been reduced, including the end of mortgage repayment deferrals."