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Canberra Market Update

Canberra Market Update

31 May 2016 Symon Badenoch

SALES

 

The Canberra Sales Market has witnessed a large increase in sales volume compared to this time last year with an increase in both houses (13%) and townhouses/apartments (21%).  Buyers seem confident with the current economic conditions and record low interest rates.

However, if we break down the median sale prices can see a 3 tiered market with houses showing strong growth over the last 12 months, townhouse prices remaining steady and apartments declining slightly.

 

Median Prices – Sales

Houses- $597,500 – annual increase 5.10%

Townhouses - $440,000 – annual increase 1.15%

Apartments - $392,500 – annual decrease 0.69%

 

The demand for freestanding houses is on the increase due to the fact that the ACT Government will no longer be releasing large blocks with a push towards medium density housing.

We expect townhouse prices to remain stable and potentially increase in the coming few years as the majority of new developments are now large apartment blocks and we witnessing less townhouses being built. 

 

Days on Market – Sales

Houses are selling dramatically quicker than apartments across all areas with the Inner North out performing all other regions.

North Canberra, Weston Creek and Woden Valley have had the least amount of time on the market in comparison to other areas. Gungahlin and Tuggeranong had the most days on market. The rise in days on the market in Gungahlin may be due to the amount of new suburbs being released in that region. Tuggeranong has not had as much infrastructure occurring which could be the reason for the slower turn over in the area.

 

Region

Houses

Townhouse/Apartment

Belconnen

47.3

126

Gungahlin

73.2

128

North Canberra

26.1

109.9

South Canberra

44.7

93.5

Tuggeranong

67.4

110.9

Weston Creek

34.1

97.2

Woden Valley

37.1

110.2

 

 

RENTALS

 

The good news for investors is that the volume of rental properties on the market has declined by 4.5% compared to this time last year.  This has influenced the median rent with an increase of 5% to $420 per week compared to this time last year.  Investors should still be cautious as there is a large supply of properties coming on line within the next 12 – 24 months.

The rental market is completely different to the sales market with townhouses and apartments renting just as quickly as houses.  The main reason for this is that tenants want to live in great locations near employment hubs and entertainment precincts and the majority of large apartment developments are being built in these areas.  The demand seems to be similar throughout all areas of Canberra.

 

Days on Market – Rent 

Region

Houses

Townhouse/Apartment

Belconnen

22.8

26.1

Gungahlin

23.9

24.8

North Canberra

27.7

27.2

South Canberra

35.1

29.5

Tuggeranong

25.7

26.1

Weston Creek

28.1

31.1

Woden Valley

31.8

26.8

 

If you wish to discuss the current market or any other issues relating to your investment property feel free to give our team a call.

 

DATE SOURCE:  allhomes.com.au