As the capital and political center of Australia, Canberra remains one of the most stable markets in the country at the dawn of the new decade.
"In the past three years, the nation's capital has produced the second highest price growth of any capital, behind Hobart. The demand has been driven by a boom in foreign students, a strong tourism sector and an increase in employment for white-collar workers, "said Simon Pressley, general manager of Propertyology.
[December1945] Herron Todd White's December report for December 2019 notes that buyers are looking for homes located on large blocks of land in established suburbs that are close to good schools and good jobs.
This increases the chances for an investor to profit from rental yields in areas of low vacancy, while expecting growth. High-end properties are also sought after by investors wishing to expand their portfolio. Canberra's resilience during the 2019 national downturn seems to have proven its stability.
"The Canberra housing market remained relatively resilient to falling prices until 2019, with the market falling only 1.5% for a brief period between April and July. Since then, home values ??in Canberra have rebounded 4.0% to a new record in November, "said Tim Lawless, research manager at CoreLogic, in his 2020 outlook report.
"Given the strong economic and demographic conditions, we expect the value of housing in Canberra to continue to increase in 2020, probably at a rate similar to what we saw in 2019".
However, the availability of supply could be a concern for Canberra, as activity in the medium density market has already felt its impact.
"We are concerned about the apartment market in Canberra – 63% of all housing approved in Canberra in the past 16 years has been semi-detached," said Pressley.
With Canberra's prices, what they are – a median of $ 611,841 for the three-month period ending in November 2019 – this could have an effect on market performance in 2020. However, the city's economic strength is likely to do too. like the lower interest rates nationwide.
In Knight Frank's Outlook 2020 report, chief economist Ben Burston says: "Due to a sharp drop in interest rates and the prospect of a new RBA action, we expect the investment market to reach new heights in 2020 ".
SUBURB TO WATCH
NGUNNAWAL: The real estate market is getting better and better
In the suburbs of Gungahlin in Ngunnawal, the real estate market continues to experience positive growth. Although the growth rate slowed in the 12 months to November 2019, house prices have increased 30.5% in the past five years, bringing the median value to $ 534,856.
While the unit market also experienced growth during this period, values ??fell 4.3% from year to November, bringing the median price down to $ 413,763. Nevertheless, average discounts in both markets were low, 2-3%, which indicates that sellers don't have to compromise too much to make a sale.
The units are taking the lead with regard to the rental market, rental rates increasing by 7.1%.
Discount: The average discount for houses and units is only 2 to 3%
Rent: Rental rates for dwellings have increased by 7.1% in the past year
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