It’s been a while, but now the general election is over, and everything has shaken back down into the ‘Canberra life as usual’ pattern, it’s useful to take another look at the local market, so here is my Canberra Real Estate Market Update July 2019.
The Face of Canberra Is Changing
Lonely Planet described Canberra as ‘a hidden gem that has been hiding in plain sight’, and many locals would agree. However, the population is growing apace, we have increasing urbanisation with the current ACT government approving high rise developments left, right and centre – especially in the Inner North suburbs. The approach to Canberra, once drivers have left the comparative safety of the Federal Highway, will be past rows of multi-storey apartment blocks down Northbourne Avenue to the City Centre and Lake Burley Griffin – where yet more apartments are proposed to be built. Hmmmm.
How Does This Affect The Market?
All of this means that there currently is a massive oversupply of apartments in Canberra so those on the market now are taking a while to sell and are not often showing any capital growth when they do. First home buyers and downsizers are the largest buyer groups for apartments, and they will go for the newest apartments, especially as they often sell with off-the-plan incentives.
First home buy houses, often in Belconnen and ‘outer’ suburbs sell well and the market there is buoyant – especially as the ACT government has abolished stamp duty for first home buyers – if they meet the means test requirements.
Established family homes have struggled recently, but now that the banks have loosened the lending requirements again, there has been revived interest in the larger family homes. Auction clearance rates are slowly trending upwards, and just this week, I placed a family home Under Offer that had been struggling to get any traction at all.
Finally, the top end of the market is always above the market. It is not affected by the daily fluctuations in interest rates or costs of living. It will do well, no matter what. Confidence is returning, interest rates are low, bank regulations are relaxing, and locally, stamp duty is reducing….and Spring is just around the corner…watch this space…
If you liked my Canberra Real Estate Market Update July 2019, follow me on instagram (@janeahernblog), so you won’t miss it when I announce the next one.
Contact me for an appraisal, I look forward to hearing from you.