Confidence is still strong in Australia’s capital, where rents have skyrocketed to the highest in the country
The current slowdown in the national property market has shaken the confidence of buyers in general, with buyer sentiment in the March 2019 quarter trending down compared to the previous quarter.
The ANZ/Property Council Survey of ACT indicated that property sentiment dropped by four index points to 130 in that period. However, the ACT still has the highest confidence index in Australia, next to SA, marking a strong start to the new year for Canberra.
“This bodes well for an even busier 2019 here in the nation’s capital,” says Adina Cirson, ACT executive director of the Property Council of Australia.
The drop in housing sentiment has been accompanied by increased confidence in the areas of construction and staffing, indicating a positive outlook where finance and employment are concerned.
“The ACT is one of the fastest-growing regions in Australia. We continue to push the ACT government for streamlined planning approvals and the right tax framework and incentives in place to encourage development where and when it is needed,” Cirson says.
Tenants struggle
Despite being the central hub of the federal government, Canberra is not expected to suffer any specific impacts from the upcoming federal election.
“The federal election affects everybody, and I don’t think any of the capital cities will come out of this unscathed. But I don’t think anything different will happen with Canberra as anywhere else,” says Adrian Kelly, president of the Real Estate Institute of Australia.
“The Canberra market is doing some interesting things at the moment, particularly in the apartment market. They’ve now got the highest median rent in the country.”
Indeed, those seeking to rent in the ACT and its surrounds will have a difficult time finding an affordable space. According to the Domain Group’s rental report for December 2018, house rents in the ACT are now the highest in Australia, eclipsing even Sydney, which has long held the ‘least affordable’ mantel. The median asking rent per week came in at $560 following a 3.7% boost in the 12 months to December 2018.
Unit rents were still behind those in Sydney, but their growth rate has also been double that of houses, which suggests they could be on the same track.
SUBURB SPOTLIGHT
CASEY: Growth in property prices eases
Just 4km from the Gungahlin Town Centre, the suburb of Casey has been enjoying consistent growth since 2013, making it a desirable option for investors.
Its neighbours include the suburbs of Nicholls and Ngunnawal, and new suburbs like Taylor and Moncrieff are in the vicinity as well. Up until 1990, Casey was part of the rural property Gold Creek. The suburb has undergone considerable development since then, and has become a prosperous pocket in this area.
Growth was a little slow in the year to December 2018, with house and unit prices rising by only 0.2% and 2.2% respectively. Nonetheless, average yields are fairly strong, in the range of 4–5%.
Location: Casey is just a few minutes away from the Gungahlin Town Centre
Growth: Casey has maintained a steady pattern of positive growth over recent years
