The month in review: Canberra
By Herron Todd White
June, 2010
The Canberra market is still performing quite well for
2010 and generally the buyer power lies with the second
or third home-buyers. This type of purchaser is the same
as reported in the Month in Review August 2008.
Overall the attitude has remained consistent with
intending purchasers opting for quality homes in a good
location and on a decent size block or units in a prime location with quality finishes. In April, Canberra recorded
its highest sale on record for a manor style house in the
inner south suburb of Red Hill on a heritage listed block
of 11,353sqm. It recorded a price of $7.3 million.
The workforce in Canberra is largely dominated by the
public sector, whereby employees appear to have the
potential to earn slightly higher base wages than in the
private sector. Coupling this with significantly high rents
throughout the capital it created a consistent demand for
housing in the ACT. As a result we have seen a sustained
boom in new developments in and around Canberra.
New development taking place is commonly of a higher
density than in the past with smaller block sizes and
townhouse style residences close to local amenities. This
is particularly evident in northern Canberra. This style
suits the first home-buyer or an investor looking for an
affordable option with attractive yields. This has allowed
previous renters the opportunity to seek affordable
housing in emerging precincts. Whilst the younger age
sector of first home buyers appear to have backed out
of the market, there still appears to be demand from the
more mature aged, first home-buyers.
In the established inner north and south suburbs of
Canberra, high prices mean the buyer type with the
most power is the cashed up investor or family looking
to upgrade.
The availability of online services such as ‘Allhomes’ and ‘actmapi’, has empowered the astute buyer to research and
ascertain a fair idea of market conditions and information
pertaining to properties of interest. Allhomes has been
able to take a strong hold on the Canberra residential
market, being the most predominantly used advertising
and research basis for buyers in the ACT.
It will be interesting to see over the next month or so if
the interest rate hike will soften the residential market
in Canberra but for now the market has remained
quite resilient with established investors looking for
opportunities of possible capital gain and rental returns,
families upgrading and potential buyers looking for
affordable options on the outskirts of Canberra.
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