Although it is one of the most consistent markets in the country, Canberra's lack of affordability remains a serious drag on its appeal to buyers.
It already has one of the highest median prices among Australian capitals, at $ 611,841, behind Sydney and Melbourne. CoreLogic's Home Value Index for December 2019 notes that it is also one of three regions in the country to report record home values, alongside Hobart and regional Tasmania.
In addition, Canberra remains the most expensive capital to rent a house. The domain rental report for the fourth quarter of 2019 indicates that, in the wake of a unit construction boom, the rents demanded continued to increase, and significantly – the house rents have increased. 3.6% year-on-year, while unit rates increased 2.1%.
The vacancy rate in Canberra was low, a sign of strong demand despite the rental rate, although it increased in 2019. However, as the unit market of Belconnen and the Tuggeranong real estate market followed the general trend of the city with rental rate increases of 6% and 5% respectively, rents for Woden Valley homes decreased by 3%. At the same time, rental yields for Canberra homes and units have increased.
Nevertheless, the potential movements in the rental market have not improved the buyers' feeling towards Canberra. In the 2019 real estate investor sentiment survey conducted by Your Investment Property, Property Update and Onthehouse, this capital city ranked above Darwin only in terms of capital growth potential for investors over the years. next five years. The results of the ANZ / Property Council survey of March 2020 confirmed this – while expectations of housing prices were high for ACT, the sentiment of buyers has dropped significantly.
One possible factor is the difficulty of financing a property here, even with the government's first housing loan deposit system (FHLDS).
“Under the FHLDS, people with high income are offered the same advantage as people with low income. This may actually offer more benefits to those who win up the threshold, "says Eliza Owen, director of residential research for CoreLogic in Australia.
“The program is currently limited to 10,000 guarantees per year, granted on a“ first come, first served ”basis. In reality, the savings rate is unlikely to be constant at all income levels and [the scheme] does not address issues such as spatial inequality, where low-income households have more struggling to buy closer to job centers or in more “ livable '' areas. »
SUBURB TO WATCH
PEARCE
The housing market in the suburbs of Pearce has experienced strong growth for several years, but during the 12-month period ending in December 2019, values ??fell by 0.5%. Unit prices fell further 5.1% after a downward trend that began in 2016. This brought the median unit value below $ 450,000.
Pearce is about 10 km from Canberra, so in terms of convenience, this is a good option for buyers, given the relative affordability of the units. The Mount Taylor Nature Reserve has trails leading to a summit that offers breathtaking views of Tuggeranong and Woden. There are also excellent amenities like schools and shops.
Location: Pearce is just 10 km from Canberra, providing comfort for those working in the capital
Nature: The Mount Taylor nature reserve is nearby, and the hike to the top offers a magnificent view
Top suburbs:
tank
,
East victoria park
,
Narara
,
new farm
,
toowong
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