Confidence is still high in the Australian capital, where rents have risen to unprecedented levels in the country
The current slowdown in the domestic real estate market has shaken sentiment among homebuyers in general, with sentiment easing in the March 2019 quarter from the previous quarter.
The ANZ / Property Council survey on ACT indicates that sentiment towards real estate fell by four index points to 130 during this period. However, ACT still has the highest confidence index in Australia, after that of South Africa, marking a good start to the year for Canberra.
"This bodes well for 2019 even more busy here in the nation's capital," said Adina Cirson, ACT's executive director for the Property Council of Australia.
The declining housing climate is accompanied by increased confidence in the construction and personnel sectors, indicating a positive outlook for finance and employment.
"ACT is one of Australia's fastest growing regions. We continue to lobby the ACT government for streamlined planning approvals and a proper fiscal framework and incentives in place to encourage development where and when it is needed, "said Cirson.
The struggle of tenants
Although it is the hub of the federal government, Canberra is not expected to be particularly affected by the upcoming federal election.
"Federal elections affect everyone and I do not think capital cities will come out unscathed. But I do not think anything different will happen in Canberra like anywhere else, "says Adrian Kelly, president of the Real Estate Institute of Australia.
"The Canberra market is currently doing some interesting things, especially in the apartment market. They now have the highest median rent in the country. "
Indeed, those looking to rent in ACT and its surroundings will have a hard time finding an affordable space. According to the Domain Group's rental report for December 2018, ACT home rents are now the highest in Australia, eclipsing even Sydney, which has long been the "least affordable" pillar. The median rent charged per week rose to $ 560, following a 3.7% increase over the 12 months ending December 2018
.
Rents were still lower than in Sydney, but their growth rate was also double that of homes, suggesting that they could be on the same track.
SPOTLIGHT ON A SUBURB
CASEY: real estate price growth easing
Just 4 km from downtown Gungahlin, the Casey suburb has been growing steadily since 2013, making it a desirable option for investors.
Among its neighbors are the suburbs of Nicholls and Ngunnawal, as well as new suburbs such as Taylor and Moncrieff. Until 1990, Casey was part of the Gold Creek rural property. The suburb has grown considerably since then and has become a prosperous pocket in this region.
Growth was slow in December 2018, with home and housing prices rising only 0.2% and 2.2% respectively. Nevertheless, the average yields are quite high, on the order of 4 to 5%.
Location: Casey is minutes from downtown Gungahlin
Growth: Casey maintained a steady trend of positive growth in recent years
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