How is the Canberra Property Market October 2017
Strong growth and increasing investor interest sets the Canberra market up for greater growth in the coming months and years. However, this is distilled with an oversupply of units that is undermining the property growth.
When considering the question ‘how is the Canberra property market’ you must distinguish between different elements. You need to see how various parts are performing themselves. If we only take a generic look at the Canberra market we would see slight growth, but that is not reflective of what is truly happening.
How is the Canberra Property Market October 2017 – An Overview:
The property market is beginning to become the centre of attention in the Australian market. With a flooding of new properties, strong house price growth and a seemingly stable future it is certainly a secure investment and living area.
Median house price has recently surpassed $720 000 reflecting the positive growth in the market. On the flipside, due to a glut in new and relisted apartments, the unit median has dropped to somewhere around $405 000.
This has occurred as the supply of units has increased and the rental market competition has grown significantly. This has created a cap on investors strong desire to buy these apartments. By no means has it been negative for investors, it has just slowed down to a more reasonable pace. This tempering of the market can hide the strong growth in other sectors, but is reflective of a shift in attitude.
How is the Canberra Property Market October 2017 – The New Investor Market:
As more apartments are created the market generally moves towards an investor-rental market. We are definitely seeing this in the Canberra property market as investors flock for quick gains and long-term stability.
This is also in reaction to the exalted growth of Sydney and Melbourne being poised for a potential slowing down. Although it is unlucky we will see those markets fall in any dramatic sense, the long-term stable and high growth has got investors feeling their luck is up. These markets will likely remain positive, but confidence is shifting now to other capitals such as Brisbane and Canberra.
As a Domain report puts it: “With healthy market confidence and affordable unit prices, the city is bursting with possibilities.”
How is the Canberra Property Market October 2017 – The New Stable:
An interesting point is that Canberra holds the only real property growth, apart from Sydney and Melbourne, out of the capital cities of Australia. This simply means that, when adjusted for inflation, the property value growth has been positive in Canberra.
The Canberra market also has a strong public sector which is supporting and stabilising the market. This is an inherent truth due to the location of so many public offices and government buildings in the ACT.
On top of this, secure employment, consumer confidence and below-the-trend unemployment has the Canberra market set up for long-term stability and growth.
In Conclusion, how is the Canberra property market as of October 2017. We don’t have the same high of expectation that we saw around the mid-year. However, we now have a more realistic, stable and growing market that should shed returns for years to come. Hence, the market is great for buying and selling currently as there is strong competition and potential for growth. If you hold onto your property longer you should see growing returns, but if you choose to sell you have a hot market to move into. Furthermore, downsizing, especially to an apartment is a seemingly wise choice currently. With lower prices, but still room for growth these options are tantalising to many.