The month in review: Canberra
By Herron Todd White
May, 2010
Featured in the inner south region of Canberra are the
suburbs of Forrest and Red Hill. These two suburbs boast a
large collection of some of the most expensive real estate
in the Canberra region. Our attention will be focused on
the suburb of Red Hill where large parcels of land often
featuring prestige dwellings and in close proximity to the
CBD drive the million dollar-plus sales.
Red Hill was established in 1928 and the detached
dwellings in the area built circa 1930 and 1940s are
usually single storey and of solid brick construction
with extensions and renovations made over the years to
create larger floor plans. The fact that these properties
are situated on blocks usually more than 1000sqm in size
helps push the price further up. In terms of ancillaries,
well established grounds, large entertaining areas and
multiple car accommodation are common for the larger
properties.
A recent high sale in the area came in at more than $3
million and the median price for the area is sitting around
$900,000. This contrasts with Canberra itself the median
is sitting at $500,000.
Buyers of these properties are a mix of investors and
owner-occupiers attracted to the quiet, tree lined
streets in close proximity to parks, Manuka and Kingston
shopping precincts and the CBD. In the current climate,
transactions of expensive properties in the Red Hill area
have remained steady relative to the fact that they don’t
occur as often as the standard product out in the market.
Due to the age of the dwellings in the area, an investor
should be wary of the condition of the particular dwelling
that they may be interested in, as unforeseen costs could
become a deal-breaker.
At the lower end of the Canberra property market is
Charnwood. A suburb mostly constructed in the mid
70s and mostly populated by low-income earners or first
homebuyers.
The reasons for Charnwood’s position at the bottom of
the table can be largely attributed to the size and quality
of the blocks and construction in the region. The suburb
is dominated mostly by three bedroom stand-alone
dwellings, built on less than generous blocks. The quality
of these builds is often well below par. Most dwellings
consist of a standard brick veneer, concrete tiled roof
sitting on brick piers, with very minimal internal features to
offer out-of-area buyers. Renovations in the area are also
minimal, most likely due to fear of over-capitalisation.
Despite the reputation there is potential in the market
for Charnwood. Recent developments in West Macgregor
and to a lesser extent, Dunlop, have attracted a new breed
of buyers to the Western Belconnen region, which in its
northern extremities is also moving closer to the everexpanding
Gungahlin region. Given the recent increase
in sales prices in these regions, it is fair to assume that
Charnwood is likely to see some repercussions from these
current hot spots.
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