Canberra home values remained steady across July, according CoreLogic's home value index, which showed no change in the capital.
Change in the territory's overall dwelling values was 0 per cent in the last month and just 0.5 per cent in the last quarter.
But a closer look at house versus unit values across the same period reflects historic construction habits in Canberra, CoreLogic's executive research director Tim Lawless said.
Houses outpace units in value
The index showed house values continued to be higher than that of units in the territory.
Houses had very little change in the month of July 2024, just a 0.1 percent growth, while apartments were down 0.6 per cent over the same period.
Canberra house values were up 1.1 per cent for the quarter but units were down 1.6 per cent, according to the data.
Mr Lawless said weakness in the Canberra unit market was a clear example of "a sufficient supply response".
"This is a real reflection of the history of a lot more building activity happening in the medium-to-high density sector, rather than [houses], across the ACT," he said.
"House building has been holding study but there has been a lot more units built than houses.
"It really does help keep a lid on home prices."
The sluggish growth of unit value in Canberra could be an opportunity for first home buyers to purchase units at a relatively low price, he said.
The only other capital city with positive growth in house value but negative growth in apartment value across the quarter was Darwin.
A fade in Canberra's housing value growth may be likely following July's inflation growth, lessening the possibility of further interest rate hikes, Mr Lawless said.
This would make the market more accessible to first home buyers.
'Smart money' moves in on Canberra investments
Gross rental yields in Canberra were sitting at 4 per cent in CoreLogic's most recent home value index report, ahead of Adelaide, Brisbane, Melbourne and Sydney.
Hobart and Perth just pipped the territory, with both sitting at 4.3 per cent.
Despite the relatively high yield Mr Lawless said he was "not seeing much investment" in Canberra relative to other capital cities, particularly from foreign buyers.
"Investors really focus on opportunities for maximising capital gain over the short to medium turn," he said.
"With that in mind, even with a higher rental yield and pick up in rents, I think we will still see most investors looking towards markets like WA and Queensland for the investment choices."
But Mr Lawless said domestic buyers could make "smart money" by looking at Canberra or Melbourne markets where the yield profile is healthy.
"The longer-term prospects for capital gains might be a little stronger in [these places]," he said.
Gross rental yields for both houses and units have grown month-on-month in the last financial year.
Both hit their lowest rates in June 2023 since 2019. They are yet to reach the highs hit in 2021 and 2022.
