Market Wrap - October 2015
30 October 2015 Symon Badenoch
As we head toward Christmas we start to look towards 2016 and what will happen with the property market in the ACT. Below is a quick review on 2015 and my prediction for 2016:
- The housing market in the ACT during 2015 has been strong with significant increase in demand forcing up prices
- The short supply of quality established houses and ACT Government buy back of Mr Fluffy properties was the major influence
- I expect during 2016 that the increase in prices to slow but the demand to remain strong
- Buyers will continue to move away from generic styled homes towards older, established houses
- Townhouses during 2015 have been undervalued and represented great value for buyers
- The supply is limited due to the high volume of apartments being developed rather than townhouses
- If you are looking for a good investment property during 2016, I suggest considering a townhouse as I suspect the prices will increase once everyone realises the great value!
- During 2015 the apartment market improved from the poor performance of 2014
- We are still seeing a large volume of construction and this is set to continue into 2016
- I don’t expect any price increases in apartments during 2016
- I do expect a larger amount of “poor” quality apartments will become available as builders look for cheaper construction methods
During 2015 we saw a large improvement in the rental market compared to 2014. The unemployment rate in the ACT remains low and confidence in the business sector seems to be growing. Whilst the rental amounts did not increase during 2015, the vacancy rate decreased.
As we head towards the moving season (I.e December to February) we expect this trend to continue. I don’t predict any increases in rental prices during 2016 as there is still a large supply of new properties coming onto the market throughout the Canberra Region with a number of new suburbs and complexes being completed.
If you wish to discuss any of the above feel free to contact our team at anytime.