Homes & Relocation Detail
Canberra property market
Jo-ann Hodgson takes a look at one of the most heated property markets in Australia.
Canberra's property market has enjoyed seven years of above average performance, with median house prices increasing by 110 per cent in the last four years, and although there are indications that this growth spurt is slowing, demand for property shows no signs of waning. RP Data spokesman Kris Matthews wrote in BRW Magazine recently that Canberra's property market has experienced a strong 12 months. "Houses are selling quickly averaging just three weeks on the market and there is little difference between the asking price and selling price of property," he said.
Property prices are also continuing to rise, if not quite at the rate experienced over recent years, with the capital city seeing a 17.6 per cent increase in values from June 2006 to June 2007. "Prices in Canberra have risen quite substantially in the past 12 months," says Chris Wilson from Cameron Real Estate. "The biggest reason for this is that there has been a lot of buyers around and not many properties coming onto the market, therefore the most influential thing driving the market at the moment is the very high demand and the very short supply of good properties." He continues: "I think that we can expect to see prices remain quite high as there is a very tight rental market and there are a lot of people still coming to Canberra for work and this is underpinning the sales market."
Housing affordability in the city also remains strong due in part to the fact that the average Australian Capital Territory household income is higher than in any other state of territory in the country. The average ACT household spends 23.8 per cent of median family income on home loan repayments, compared to the national average of 35.4 per cent. Much of Canberra's house price growth can be attributed the the city's inner, and most affluent, suburbs with districts in Canberra's top ten either inner or middle-ring suburbs. AFR Smart Investor Magazine in conjunction with Australian Property Monitors recently named the inner-southern suburb of Griffin among the nation's best investment locations. The area had a median price of AUS$310,000, offering investors a return of around 6 per cent, reported Echoice Loans. "It's close to the lake and parkland," said LJ Hooker Manuka managing director Stephen Thompson. "It's what they call a lifestyle suburb." "The most expensive areas are the inner south of Canberra; suburbs such as Red Hill, Forrest, Griffith and Deakin," says Wilson. "The least expensive areas are suburbs in the outer rim of Canberra such as Charnwood in the northside and Banks in the southside."
Suburbs with good growth prospects include Curtin in Woden Valley, which many property experts believe remains undervalued, and Gordon, on the west side of Tharwa Drive, which has experienced strong median house price growth in the past couple of years. This growth has been largely due to the affects of new development and as the area has a natural restriction on the supply of land, being near the New South Wales border, values are expected to grow in the long term.
Although fears exist among property experts that Canberra is pricing itself out of the market, a steady stream of development is helping to put some concerns at bay. These new builds involve the first high density project in Canberra, a large Metropolitan development in the city centre, and the recent release of almost 1,000 lots of land at Gungahlin. However, in its latest Month in Review report, Herron Todd White noted that: "Whilst these new suburbs will meet needs, there is a concern that if the government fails to attract more public servants to the capital (it needs to fill an estimated 2,000 new positions) an overstocking situation my occur in these new areas." Whether it'll be a case of under- or over-supply, only time will tell.
The Canberra suburbs
Banks: The most southerly suburb of Canberra, Banks is named after Sir Joseph Banks, the botanist who accompanied Captain James Cook to Botany Bay in 1770. Because of this the suburb's street names have a botany theme.
Charnwood: A suburb in the Belconnen district of Canberra, Charnwood's street plan is designed so the houses face a common parkland and the suburb's network of passageways and foot-bridges are great for pedestrians.
Curtin: In the district of Woden, bounded by Cotter Road, Tuggeranony Parkway and Yarra Glen Avenue, Curtin is home to a shopping centre encompassing many shops and services and also offers many restaurants and eateries. The suburb is also home to many parks and horse paddocks.
Deakin: Named after Alfred Deakin, the second Prime Minister of Australia, Deakin's streets are named after governors and diplomats. The suburb houses the official residence of the Prime Minister, 'The Lodge', as well as the Royal Australian Mint and various embassies.
Forrest: One of the few suburbs in Canberra built to the original Canberra plans, Forrest is designed in circular and geometric patterns. The suburb's original residents included mostly senior public servants who moved from Melbourne and the suburb remains an area of high income.
Gordon: Gazetted in 1987, Gordon's streets are named after sportsmen and women. The suburb is home to Point Hut Pond and Point Hut district park.
Red Hill: Named after the northernmost hill of the ride to the west of the suburb, Red Hill is managed as part of Canberra Nature Park and is home to a slightly older population.
For more information:
Echoice
Cameron
APM
LJ Hooker
HTW
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