Canberra July 2017

The month in review: Canberra

By Herron Todd White
July 2017

The first half of 2017 in the Canberra residential property market has seen continued strong growth and continued demand for detached established dwellings. With the large number of apartments coming onto the market, unit stock is available in abundance in the sub $500,000 bracket. Some areas suitable to invest half a million dollars would be Braddon, Campbell or New Acton in Canberra’s inner north. Apartments in this area would be expected to hold and increase value better than suburban developments due to their proximity to the city. Rental demand for these properties remains strong despite the increase in supply presenting a good opportunity for a profitable investment.

In the detached housing market, Ngunnawal in the north and Wanniassa in the south are two suburbs suitable for a $500,000 investment. Half a million dollars will secure a 1990s, 4-bedroom, 2-bathroom, 2-car garage property on a 600 square metre block in Ngunnawal. In Wanniassa a similar house is available but most are 15 to 20 years older and are sited on larger parcels of land. Rental yields for a 4-bedroom house in these areas are sitting at around 4.5% to 5% for well-maintained properties.

With the recent growth in the ACT, the lazy half million doesn’t stretch as far as it used to when chasing solid capital growth. $500,000 won’t be able to crack the Woden Valley market or even Weston Creek when looking for detached houses. There has also been strong growth in some Belconnen suburbs including Cook, Macquarie, Weetangera and Hawker amongst others. This is confirmed by several strong recent sales of vacant land (remunerated loose fill asbestos blocks) in these areas.