Properties record high prices, but buyers opt for a wait-and-see approach as political waves settle
In the Australian capital, properties continue to lean towards the most expensive. However, the fallout from the federal election prompted buyers to be cautious.
"Investors tend to hold their wits and not buy or become aggressive before or after the election – there's always a little bit of waiting to see," says Brendan Kelly, Director of Results Mentorship. ,
"Combined with the results of the royal commission and the changes to APRA, encouraged by the RBA to relax the lending criteria, we are now seeing change and uncertainty."
The Canberra real estate scene has generally been influenced by the political movement, the same sector fueling the labor market. And this is not limited to local politics: global problems like Brexit and the rise of China also have an impact.
"The political environment of Canberra is the driving force of property rather than the forces of the market, so it is the bureaucratic political decision that significantly affects or influences the housing market. Given the change of government, I read that we are going to find ourselves in a more neutral environment, "said Kelly.
"We will settle in the next six months; Therefore, I think we will not see much buying in Canberra. I expect the market will be better balanced. "
The population is flourishing
Canberra is one of the best examples of how employment opportunities can significantly support the real estate market. The 2019 report on residential and residential construction hot spots in the Housing Industry Association (HIA) suggests that, even with the election result, construction activity in the ACT is likely to continue normally .
The report notes that, in 2017/18, the population has grown rapidly, attracting migrants from within and from outside the country. The attractiveness of the capital city for foreign buyers is mainly due to international education, which is a necessity given Canberra's position as Australia's main political center.
Migrants are also drawn to the strength of the capital's economy, which had the lowest unemployment rate in Australia during this period, at 3.5%.
Building on these factors, the IHA has identified seven suburbs as hot spots to be monitored by buyers based on residential building approvals and population growth from 2017 to 2018. The list includes the suburbs of Greenway , Phillip, Kambah and Curtin.
SUBURB TO MONITOR
GORDON: Good atmosphere in the suburbs of Tuggeranong
Bordered by the suburbs of Bonython, Conder and Banks, Gordon is in good company, as evidenced by his growth levels.
The suburbs have been on an upward trajectory since 2014, with home values ​​skyrocketing 25.4% in the five years to March 2019 to reach a median of $ 636,310. Although the trend of growth was more moderate, the unit market was also rather positive, with values ​​up 6.8% in one year to March 2019 to surpass the $ 400,000 mark.
The good news does not stop there: investors are also able to take advantage of high rental yields – 4.7% for homes and 5.5% for units from January 2019.
Location: The neighboring suburbs of Tuggeranong District include Banks, Bonython and Conder
Yield: Gordon rental properties generate solid yields of 4 to 5%
Top suburbs:
Bendigo
,
coburg north
,
Darlington
,
Chermside
,
Alderley
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