The Smartline Report – July Edition

The month in review: Canberra

By Herron Todd White
July 2016

The first half of the 2016 calendar year in the Canberra residential property market has seen linear growth and a further shift in demand towards detached established dwellings. While modern and centrally located unit stock is available in abundance in the sub $500,000 bracket, numerous changes in lending criteria for investors, poor rental performance and product over saturation in particular segments are the main drivers leading this shift. When coupled with less than desirable capital growth, the market has been responding accordingly.

The lazy half million can still achieve reasonably good value in both the north and south of Canberra.

Two suburbs which highlight this are Ngunnawal (Gungahlin region) and Wanniassa (Tuggeranong region). $500,000 will secure a 1990s, 4-bedroom, 2-bathroom, 2-garage home on a 600 square metre block in Ngunnawal and a similar home in Wanniassa albeit 18 years older and on a larger parcel of land.

With the median house price in the ACT hovering around the $560,000 mark, the lazy half million doesn’t stretch as far as it used to when chasing solid capital growth. Gone are the days of being able to crack the inner south or even the Woden Valley region, both desired for solid capital performance. This is evidenced by several recent sales of vacant land (remunerated loose fill asbestos blocks) for well over $500,000.

With the aforementioned regions being prohibitively expensive, focus has transferred to the Weston region (specifically suburbs geographically close to Woden, Waramanga and Weston) with strong growth observed in the past 18 months. The market has realised this potential and sales of 3-bedroom, 1-bathroom ex-government stock has increased, with new owners electing to renovate and play the waiting game.

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. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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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.