Canberra still has one of the best real estate markets in the nation's capital, just behind Hobart
Australia may be in the midst of a slowing real estate market, but its capital is one of the best markets in any capital city.
According to the CoreLogic Real Estate Value Index for April 2019, Canberra was the only capital city to record an increase in home values ​​between March and April, ahead of Hobart, with a price drop of 0.9 % during the same period. This reflects good market conditions in Canberra, which also recorded one of the country's highest annual gains, at 2.5%, just behind the 3.8% of Hobart. Canberra was also one of three cities, alongside Hobart and Adelaide, to avoid a 12-month fall until April 2019.
The positivity of Canberra certainly stands out. However, the decision taken by the ACT government in 2012 to eliminate stamp duties over a 20-year period is also being felt, with revenue from stamp duties in the state being down from 2018. This decline is expected to continue as the national economic slowdown continues of course.
Of the five Canberra districts that experienced the largest price increases in the twelve months prior to April 2019, four were located around Belconnen and Gungahlin, while a number of the weakest were located in affordable areas, notes Cameron Kusher, analyst at CoreLogic.
"While housing values ​​have fallen dramatically in capital cities, there are still constituencies where values ​​continue to rise, although the list of areas of positive growth has been reduced over the past year. last year, "he said.
A flourishing economy
The convergence of several factors keeps Canberra in its favorable position.
"The local economy is strong and tied to public spending, employment growth, relative affordability, and shortage of housing stock in the short term," says Geof Snell, BIS's top real estate economist Oxford Economics.
Australia's rapid and significant population growth is supported by positive levels of net outward migration, but Snell expects a slowdown in population growth levels.
"A positive net migration policy abroad must be maintained. If there were to be cuts, it could have a significant negative impact on the housing market, as the record supply remains in the development pipeline, "he said.
SUBURB OF WATCH
KAMBAH: Strong growth potential in the Kambah region
Located just south of Mount Taylor, the suburb of Kambah in Tuggeranong experienced reasonable growth in the 12 months to April 2019.
During this period, the median housing price broke the $ 500,000 mark for the first time in ten years. Nevertheless, the prices of the properties are always reasonable. This, coupled with Kambah's long-term growth potential, makes the suburbs an attractive prospect for investors. Vendors benefit from current market conditions, with average discounts of only 2.2% for homes and 2.0% for units.
The rental market is also going very well. Rents increased 4.2% for homes and 7.0% for units to reach weekly rates of $ 500 and $ 420, respectively. Yields are high at 4.8% and 5.3% on average.
Discounts: Kambah's properties are sold at very advantageous prices of about 2%
Rental Rates: Weekly rents soared in the 12-month period ending January 2019
Top suburbs:
Woolloongabba
,
Ferntree Gully
,
Nundah
,
coburg north
,
Padbury
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