The month in review: Canberra
By Herron Todd White
April, 2010
One of the best gauges of market confidence is the ability
for buyers to find a few extra dollars to take the plunge
and purchase some bricks and mortar in their favourite
getaway destination.
Every area seems to have that great little weekend
getaway spot which tempts the locals into sinking a few
dollars into a piece of paradise where they can lie down
for the weekend.
For some it’s a mountain destination, others an island
locale or a nearby beach.
Canberra is something of a surprise when it comes
to attractions. Most people will know its local tourist
hotspots such as the War Memorial, Parliament House,
the National Art Museum and Questacon. But there is
much more, in particular a thriving collection of national
parks and recreation facilities.
It also enjoys close proximity to a number of Australia’s
top tourist destinations. Among those is a collection of
some of Australia’s most popular ski villages.
Since winter is two months away our attention is first
focused on the snow retreat. Jindabyne is a township
found in the south-east area of New South Wales and
two-and–a-half-hour drive south of Canberra. The town
overlooks Lake Jindabyne and the Snowy Mountains. The
area is a popular choice for tourists as Jindabyne is only
a 30-minute drive to multiple ski resorts in the Kosciusko
National Park including the well known fields of Perisher
Blue and Thredbo. Jindabyne features an even mix of
detached housing and unit accommodation. High rental
yields can be accomplished during the winter months
due to snowfield workers and holiday-makers looking
for accommodation. These premiums would be hard to
sustain in the summer months. The relative size of the
snow region also limits the opportunities for expansion.
In turn, the hospitality industry is much more functional
and effective for the locales on account of the seasonal
demands.
Come the summer months, once the snow disappears,
Canberra looks east to the coast. Bateman’s Bay is a
two-hour drive from Canberra City and offers all that
one would expect from a beachside town. The surf, sun
and sand offer a desirable alternative to the shores of
Lake Burley Griffin. It’s a popular holiday destination
and equally a haven for retirees seeking the sea change.
Younger families have also become attracted to the area
with affordable housing options and the quieter lifestyle
attributed to the seaside. In terms of the housing types
in the area around three-quarters of the properties
are detached housing and the remainder are units and
townhouses. During summer months the population can
swell to double its size and provides opportunities for
attractive rental yields. In terms of investment properties
or holiday homes, this is the locale that Canberrans will
generally look to, to secure some bricks and mortar.
Again, the region is reasonably seasonal in terms of its
major tourist influx, however due to a larger population
base than the snow fields; demand for property is much
more consistent throughout the year.
For most Australians, during the economic downturn the
holiday home was the first asset to go. The subsequent
increase in supply meant home values fell and bargains
became available for those with the disposable income.
Market conditions in these holiday areas for 2010 look
like improving with recent news of better employment
conditions and thus more buyers should enter the market,
increasing demand. Factors to keep in mind however are
the recent interest rate hikes and overall confidence in
the market seemingly always changing at the moment.
This means that the right research and advice into an
investment property or home is critical for success.
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