Political stability leading to increased consumer confidence, Canberra uses to increase its land base
According to the CoreLogic Home Value Index, released in June 2019, the domestic real estate market is still down, but this trend is slowing.
"The improvement in the housing market situation in the first five months of the year was largely organic; However, since mid-May, many announcements have been announced that should contribute to a positive change in housing demand, "said Tim Lawless, Head of Research at CoreLogic.
"Stability within the federal government, coupled with the removal of uncertainty surrounding changes in the negative reductions in capital gains and foreign exchange gains, has increased certainty and increased confidence in the marketplace of housing. "
As a center of politics in Australia, Canberra is a market that certainly benefits from the stability of the national government. Indeed, Herron Todd White's month-long report for July 2019 suggests that activity levels are increasing as the residential market settles and consumer confidence improves.
At the same time, in response to the demand for industrial land, the ACT state government has developed an indicative program of industrial land release for a four-year term. Essentially, the program should increase local government responsiveness to market movements by conducting an inventory of land supply. Over the next four years, the release of over 100,000 meters of land is planned, and the areas that should be supplied with land in the next few years are Symonston, Fyshwick, Majura Valley and Hume.
"The territorial government has taken the logical step of increasing the supply of medium to high density land. ACT rents are now the highest in Australia and savvy investors can get good returns with cautious investment advice, "said Michael Kumm, president of the Real Estate Institute of Australia. l & # 39; ACT.
He also points out that population growth has made it difficult for the government to maintain the appeal of Canberra's "Garden City", while providing adequate land for residential housing.
In the near future, rent growth should also increase as tenants' demand rises, given the proposal to further reduce interest rates. At the same time, sales activity is expected to fall, as rising municipal tariffs deters buyers from entering the market. The border town of Queanbeyan, NSW, is an attractive alternative for homeowners who wish to stay close to the ACT.
SUBURB OF WATCH
GARRAN: House rents soar
The suburb of Garran continues to grow as prices continue to rise at this high-end location.
The median value of homes has exceeded the million-dollar mark, with prices increasing by 6.1% in Garran from January to June 2019. This trend follows a positive growth trend observed since 2014. The The same trend can be seen in the unit market, with the median unit value exceeding $ 600,000 over the same period.
Apartment yields are also reasonable at 4.9% on average, and rental rates have risen 5.7% to an average of $ 560 per week. The rise in home rents was even more remarkable, rising 20.3% to a weekly average of nearly $ 700.
Rent : Rent yields are quite high in Garran after sharp increases last year
Price: Garran is not a budget market, given the high value of his property
Top suburbs:
trott park
,
West Wodonga
,
Tuart Hill
,
alexandria
,
albion
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