The absence of appropriate land in the country's capital could weigh heavily on the growth of real estate supply
In terms of the economy, Canberra is one of the best Australian capitals. As a political center of the country, the labor market is still dynamic, resulting in sustained population growth and high demand for housing.
"ACT employs the country's largest employer, the APS, which has little or no chance of being fired a lot and enjoys guaranteed growth," says Michael Kumm, president of the Real Estate Institute. the act.
"Due to the growing population, new areas have been created in Canberra, but some lack commercial facilities and work areas. This puts a strain on our road system and the local internal migration that follows. "
The state government has increased the supply of medium to high density land, but Mr Kumm notes that the ACT has "vast expanses of land unsuitable for housing."
"In a not too distant future, the state will begin to be restricted in terms of its borders," he predicts.
Despite the lack of land, the Canberra market could still experience an overabundance of properties, which could be bad news, especially for those who buy the plan.
"Because of their size and inability to organize high-rise development, there could still be an overabundance of units in an area or in a price range," says Kumm.
"This could in turn lead to lower final unit prices at the expense of off-plan sales."
The new stock is expected to enter by 2020. In the report titled "Perspectives on Residential Real Estate from 2019 to 2022" published by BIS Oxford Economics, Associate Director Angie Zigomanis says that Over the next year, new residential construction should be completed.
"A strong local economy, strong population growth and affordable housing prices in a high-income economy will help address this situation. These positive elements will help keep prices up, despite the difficulties associated with the strong new supply, "he said.
Indeed, price growth in Canberra continues to be strong, having only slightly slowed down. Cameron Kusher, an analyst at CoreLogic, said that during the 2018/19 fiscal year, the share of real estate sales rising to under $ 400,000 continued to decline – the share sales of homes at this price level rose from 6.8% in 2017/18 to 5.0% in 2018/19.
SUBURB OF WATCH
WRIGHT: Negative Growth
Named after the poet, environmentalist and land rights advocate Judith Wright, Wright's suburb of Molonglo Valley in Canberra saw its values ​​drop over the 12-month period. ending in July 2019.
The prices of homes and dwellings both fell by about 4% during this period. The median value of homes dropped below $ 700,000 and unit prices rose to under $ 400,000. For the units, this follows an impressive 10% growth since 2016, while real estate prices have increased by almost 20% since 2014.
Despite the recent price slide, the average sellers discount for units is relatively low at 3.8%, suggesting that there is still demand. Rental rates are also up 2.3%, bringing the weekly average advertised to $ 450.
Discount: Units benefit from a low average discount of 3.8%, suggesting demand
Yield: Houses and units get relatively high yields, respectively 4.5% and 5.6%
Top suburbs:
werribee
,
Westmead
,
Leumeah
,
Newcastle
,
coolbellup
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