Canberra continues to grow steadily, with stamp duty exemptions and economic stability expected to boost demand
As one of the high end real estate markets in Australia, Canberra maintains a sustained growth trend supported by a strong economy. However, an influx of housing has had an effect on the growth in housing prices.
"Housing price growth in Canberra was minimal in 2017/18 and 2018/19, affected by a record supply of units and incentives to purchase a first home in New South Wales who were able to attract demand to adjacent regions, ”said Angie Zigomanis, Associate Director of BIS Oxford Economics.
"Median house and unit prices are each expected to increase by 10% in the three-year period ending June 2022, although increases in unit prices will be weighted towards the end of the forecast period in as the current supply pipeline runs. "
Zigomanis adds that the implementation of stamp duty exemptions in the ACT, which came into effect on July 1, is expected to stimulate demand in the coming year. The end of the federal election period also restored stability to the state.
"Buyers' demand and confidence are likely to respond to the positive effect of a stable federal government, as well as to lower interest rates, at lower prices. tax cuts and a subtle loosening of credit policy, "said Tim Lawless, research manager at CoreLogic.
While an increase in the median supplier discount over the 2018/19 period reflected a market downturn, low interest rates and relaxed borrowing restrictions helped transfer bargaining power from buyers to sellers, which could result in lower discount rates
.
The value of loans in the state also showed an increase from July 2019, signaling an increase in demand for mortgages, particularly from first-time buyers. CoreLogic data indicated that the value of homeowner loans to first-time home buyers had skyrocketed 76.4%, peaking for the first time since November 2018.
Despite a drop in unit supply prices, the unit market in the suburbs of Gungahlin was included in the list of the best tenants of CoreLogic for September 2019, ranking 99th out of 100 suburbs. The market offers rental yields of 6.4% from a median rent of $ 450 per week, and the vacancy rate is in the comfortable range of 2.4%. The median price is an affordable price of $ 360,713, making the properties here a great entry point for investors.
SUBURB TO WATCH
CAMPBELL: The Premium suburb attracts demand
The property market in the suburbs of Campbell continues to experience strong growth, as evidenced by the latest CoreLogic data. In the 12 months to August 2019, the value of homes increased 10.5% to the median of $ 1.26 million.
This trend was observed during the last five-year period, with average growth of 46.9% since 2014. In contrast, unit prices fell 2.8% to reach a median of 467,454 $ from year to August.
Nevertheless, rental yields are quite high in the unit market, at an average of 5.2%, and rental rates have soared by 13.5% to an average of $ 545 per week in 39; year to June 2019.
Efficiency: Housing in Campbell generates a good average rental yield of 5.2%
Growth: While unit prices have fallen, the real estate market is still recording double-digit growth
Main suburbs:
Midland
,
Whyalla
,
west wodonga
,
north epping
,
Kawana
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