Canberra in comfortable third place among Australia’s capitals
The ACT continues to enjoy a meteoric rise, putting it just behind Sydney and Melbourne in terms of popularity.
According to Michael Yardney, CEO of Metropole Property Strategists, Canberra was one of only three capitals to record a cumulative capital gain of over 30% following the GFC.
Recent ABS data suggests that this growth has been facilitated by the high demand created by increasing net migration levels, particularly from overseas. To provide adequate supply, housing construction has been at almost an all-time high.
“The Canberra market continues to improve in performance and has positioned itself as a leader in growth figures of late,” says Charles Tarbey, chairman and owner of Century 21 Australasia.
“Investment in the Canberra market may be a worthwhile consideration, given that it is our nation’s capital city and the areas of suburbia are areas that are very close to the capital city centre.”
Clearance rates have also increased year-on-year, despite the boosting of mortgage rates, with the Belconnen region topping the auction market once more. Thus, it’s definitely a good time to sell for vendors.
Migrants are attracted by employment
The good news on migration and supply does not just translate to positives for the property market; its impact extends to the economy as well.
For instance, the anticipated establishment of a unit complex on the old site of Downer Primary School is expected to boost the local retail industry, which will be revived in the near future.
In February, the unemployment rate in Canberra clocked in at 4.6%, which was lower than last year. This reflects the successful outcome of the city generating over 7,000 jobs in 2016.
In the process, however, the rental market has tightened for tenants, with rents spiking in the past 12 months even with considerable increases in investor activity. The rise in rents is supported by falling vacancy rates, which could make residents feel like they have little choice.
Nonetheless, this just goes to show how Canberra has been coming out as top player in the national property market. Nick Georgalis, managing director of Downer unit complex ‘Midnight’, puts it best: “It’s not the bush capital, it’s an emerging city.”
SUBURB TO WATCH
Page: Central location a drawcard for suburb
As a residential suburb of the Belconnen region, Page has certainly felt the effects of the district’s rise. Growth reached almost 10% in the past 12 months, bumping the median unit price up to almost $430,000.
The suburb honours the country’s scientists, naming streets after notable personalities in this field. It also draws interest mainly because of its ideal position beside the suburb of Belconnen, which puts Page residents within reach of amenities such as the Belconnen town centre, Lake Ginniderra, parks, ovals and schools.
Other amenities, such as the major shopping hub of Jamison Centre,can be found in neighbouring suburbs Macquarie and Hawker, along with sports facilities. Page is also less than 20 minutes from Canberra itself via Belconnen Way and Barry Drive, making it the perfect suburb for city employees. Daily buses take commuters to and from the CBD.
