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The month in review: Canberra
By Herron Todd White
July, 2009
In 2008, we commented that $500,000 would purchase a
4 bedroom ensuite home in an establishing outer suburb
or a 2 bedroom ensuite unit in the town centres of Woden
and Belconnen.
A year on, and not much has changed, the same amount
may purchase an older style 4 bedroom home on a
larger block, or a modern 3 bedroom ensuite home on a courtyard block in an established outer suburb. Within
the inner suburbs you can purchase an older 3 bedroom
unit or a new 2 bedroom unit in Kingston or the City. Not
forgetting Queanbeyan where you can purchase a new
3 bedroom townhouse or an older 4 bedroom house on
a generous block. The past year has seen some tough
economic times with the global downturn, but Canberra
has managed to weather the financial storm as house
prices have risen steadily with new developments and
land releases selling well, with particular interest from
first home buyers.
On the investment front in 2009, Canberra still remains a
solid and stable performer, thanks to a large percentage
of transient workers requiring rental properties. There are
a number of residential investment options for people
with around $500,000 to spend, such as 2 bedroom units
in an inner suburb such as Turner, where expected rent
is approximately $500 to $550/wk. Investors seeking new
developments will have to look in the in the outer town
centres of Tuggeranong and Gungahlin, where $500,000
will buy a 4 bedroom ensuite townhouse that could be
rented for $500/wk. These developing centres provide
affordable accommodation close to facilities for people
who want brand new properties.
Looking ahead, the announcement of the end to the First
Home Owners Grant in September will soften the circa
$500,000 market in Canberra, as it has been propped
up by keen first home buyers for the last year. Proposed
upgrades to major health facilities are likely to appeal to
the ageing demographic relocating to Canberra, also the Government stimulus package handed to schools will
help the construction industry boost the local economy.
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