Canberra December 2017

The month in review: Canberra

By Herron Todd White
December 2017

The 2017 residential market saw strong and improving conditions for standard housing and stable conditions for medium density accommodation. Sales records were broken throughout the year in various suburbs. Notable events relating to market activity included commencement of the construction of light rail to link Gungahlin to the city, the marketing and sale of vacant Mr Fluffy blocks in established suburbs, strong sale prices for vacant blocks in developing suburbs and a continuous strong demand for standard residential housing.

The ACT house market saw medium to strong growth over the past year with house values increasing 7.68% from November 2016 to November 2017, owing to a shortage in new dwelling construction and increased market demand. Canberra’s inner north, inner south and Belconnen performed the strongest with the highest demand being for properties in the $600,000 to $1.3 million range.

The ACT unit market remained steady with minimal growth owing to a large increase in new unit constructions. Newly constructed complexes such as SQ1 in Greenway, Southport in Greenway, Campbell 5 in Campbell and Trilogy in Phillip have all featured upwards of 300 residential units, increasing the overall market supply significantly. Unit values increased by 2.74% over the November 2016 to November 2017 period. The 1-bedroom unit price entry point in outer suburban areas is currently between $260,000 and $300,000, while the entry point for units in the inner city suburbs is generally between $300,000 and $500,000 depending on the exact location and the quality of the improvements.

Some notable sales which have broken suburb records for Canberra’s most prestigious suburbs include a $5.75 million sale in Deakin late in 2017 and a $5.475 million sale in Yarralumla negotiated late in 2016. Both properties provided high quality accommodation in highly desirable, inner south locations. These transactions indicate that Canberra’s prestige market is in a strong position.

Overall, the ACT property market saw strong demand throughout 2017 for single residential dwellings which is expected to continue into 2018. The large supply of new units could create problems for unit values and the ACT unit market, although prices have remained steady which is also what is to be expected coming into 2018. Overall market conditions throughout 2017 were considered to be above average.

Share on:

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.