The month in review: Canberra

By Herron Todd White
October, 2009

The Canberra Property Market has come through the last year’s Global Financial Crisis fairly unscathed. This is due to the Capital’s job market. A large number of the workforce in Canberra is employed by the public sector. Unemployment, whilst relatively high for Canberra, is much lower than the rest of the country. Whilst capital growth slowed down and, in some cases, saw a negative turn since a high in late-2007; the effects were minimal compared to other areas around the country.

There are a number of recently completed and to be completed prestige residential unit developments in the Inner North and Inner South areas of Canberra. Many investors bought these properties off the plan in mid to late 2007. Recent sales, particularly in the City, are only
just matching these prices paid in the last month or so. However, the mid-range price points are expected to gain steam in the next twelve months. Prestige residential units in both the Inner North and South areas have been the most sluggish, in terms of capital growth.

The prestige residential unit market has struggled the most in the last twelve months and this can be attributed to an oversupply of such properties recently built or under construction in the last twelve months. With the completion of a number of new developments due to
finish in the next 6-12 months; the oversupply of these prestige residential units will continue to occur, which will continue to affect this market.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2008 Smartline Home Loans P/L. ABN 38 085 370 270