Canberra experienced a quantum leap in real estate price growth of 0.2% in the three months to May 2019 to become the best performer of the period and upset Hobart.
"The great motivation of real estate in the ACT is a very good population growth of 2.2% .With the lowest unemployment and the highest average wage, the demand is still there "says Michael Kumm, president of the Real Estate Institute. from ACT.
"The interior areas of Canberra are still popular because of their proximity to areas of attraction, work, shopping, and restaurants."
The resulting housing requirements prompted the government to make arrangements for the construction of new residential buildings, particularly high-rise buildings.
"We are currently seeing an increase in the number of towers under development, while reducing the size and number of individual residential developments," says Kumm.
The rental market is gaining ground and the purchase of a home is becoming increasingly difficult due to the lack of affordability.
"In the last 40 years, about 30% of the total residential market has been leased. This figure is increasing and, in recent years, it has slowly increased to 40%, partly because of the increase in the number of contracts with the government, but also the pension guarantee tax that makes owner-occupied housing less affordable. "
While population growth, economic strength, and the availability of jobs have kept the capital stable throughout the national economic downturn, Canberra has not been totally immune of its effects.
CoreLogic's Housing Value Index for May 2019 indicated that in May, house prices fell by 0.2%, although the growth rate in the quarter remained positive at 0.2%. In addition, in some areas of the state, some suburbs recorded a decline in their transactional sales from one year to another, with Isaacs in particular experiencing a significant blow of 36.8%. In contrast, the suburb of Higgins saw its total sales rise by 63.9% in February 2019.
Nevertheless, with the federal election over and the political uncertainty disappearing, CoreLogic's chief researcher, Tim Lawless, expects greater confidence in the market.
"The results of the federal elections have dispelled the uncertainty surrounding tax reform, which should boost the level of confidence of potential homeowners and buyers, especially investors," he said.
SUBURB OF WATCH
PAGE: Rental market booming
The suburb of Page, in Belconnen District, Canberra, has been characterized by a steady rise in real estate prices over the last decade. Home values grew by 4.4% over the last 12 months – up to May 2019 – while unit values rose 0.7% to reach a median price. $ 432,625.
At the same time, the owners were delighted with the skyrocketing rents up to March 2019. For the houses, rents increased by 11.1%, averaging $ 500 a week, while rents rose 10.0% to $ 440.
This means that homeowners are benefiting from average rental yields of 4.3% for homes and 5.9% for units.
tweed is heading south
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