By Herron Todd White
COVID monthly update The local Canberra housing market has continued to be quite stable. There are still active market participants, however there are lower sales listings available. The COVID-19 changes to public auctions did see a quick uptake of online auctions which proved to be quite successful with comparatively good clearance rates. The apartment market has continued to experience a long period of strong supply and weakening demand. This has contributed to wider sale price fluctuations.
The residential tenancy moratorium on evictions has affected rented properties also listed for sale; investors are approaching with more caution due to the uncertainty of rental income and ending the lease agreement during this time. In some cases, buyers have requested an extended settlement period to coincide with the end of the tenant’s fixed term lease (e.g. explicit term of the contract is vacant possession, however premises are tenanted, and thus responsibility is on the seller, not the buyer). This has resulted in some extended settlement periods on properties that would have sold within normal settlement periods pre-COVID-19.
A Lazy $700,000
Belconnen is a district located north-west of the Canberra CBD and surrounds Lake Ginninderra. There are a few options for a lazy $700,000.
In the suburb of Cook, $700,000 would be your entry point for a detached family home. If you are lucky enough to find one, it would be a circa 1960s three-bedroom, one-bathroom home with mostly dated interior situated on a 650 plus square metre lot. Cook has continued to experience strong capital growth, which should give potential buyers more confidence. True is the old saying – buy the worst house in the best street.
In the suburb of Evatt, your dollar will go a lot further. Typically, you could buy a circa 1970s renovated four-bedroom, two-bathroom detached dwelling situated on an 800 plus square metre lot. Evatt has experienced good capital growth, which is likely to continue in the short to medium term. Thanks to the ACT Government’s Mr Fluffy Buyback Scheme, there has been an array of brand-new duplex and dual occupancy dwellings built on the remediated blocks within the established suburbs of Belconnen, some priced within the $700,000 price range.
In the suburb of Flynn, you could buy a brand new turnkey, four-bedroom, two-bathroom dual occupancy dwelling with a two-car built in garage. Buyer demand has typically been a mix of firsthome buyers, downsizers and investors. The shortterm capital growth has been quite stable, as there continues to be a supply of other newly developed Mr Fluffy blocks available and in the pipeline.
Speak with a Canberra Mortgage Broker today.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.