Canberra, Australia’s national capital is situated approximately half way between Sydney and Melbourne.
Market Update – March quarter 2009*
| Canberra | Mar quarter median |
% change Dec 08 – Mar 09 |
% change Mar 08 – Mar 09 |
| House Price | $450,000 | +1.0 | -3.2 |
| House Rent ( 3 b/r) | $420 pw | +6.3 | +9.1 |
| Unit Price | $357,000 | +0.1 | -2.1 |
| Unit Rent ( 2 b/r ) | $390 pw | +5.4 | +5.4 |
| Vacancy rate | 2.5 | 0.0 | +1.3 |
* This is the most up to date available – property data is released 3 months after the end of each quarter. Source Real estate Institute of australia
It has been a bumpy ride for Canberra property in recent years with large fluctuations from quarter to quarter; however the steam appears to have come out of the market, with prices falling marginally over the past 12 months. Rental yields, particularly for units, are attractive, although not matching levels now widely available in the Sydney market.
The Canberra property investment market has performed fairly well through 2009 and is expected to continue doing so in the first half of 2010. Despite the general slowing down of sales activity prices have not fallen excessively and will remain steady according to many experts. With job losses in the ACT limited so far, incomes growth has remained intact and this has supported the local property market in Canberra.
Demand is coming back to the market with a strong rise in housing finance approvals in recent months. Going forward, despite a marked slowing of the economy, unemployment should remain low and income growth should move along at reasonable pace. Consequently, the significant improvements in affordability should see prices well supported in the Canberra market.