Canberra Property Outlook 2020
Canberra Auction Results for Saturday 14 March 2020
There were 52 residential property auctions held in Canberra on Saturday 14 March 2020. 71 per cent produced a sale, up from 47% last year, for a median sale price of $837,500 in preliminary results reported by Domain.
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Canberra Property Market Update, 6 March 2020
The Reserve Bank of Australia cut interest rates this week to 0.50%. All big four banks have passed on the cut, with Westpac moving the quickest.
RBA governor Philip Lowe said coronavirus is having a significant effect on the education and travel sectors.
“The uncertainty that it is creating is also likely to affect domestic spending. As a result, GDP growth in the March quarter is likely to be noticeably weaker than earlier expected.”
Dr Lowe noted “further signs of a pick-up in established housing markets” and said home prices in Australia are “rising in most markets, in some cases quite strongly.”
“Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued.”
“Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.”
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Canberra auctions results 29 February 2020
There were 65 residential property auctions held in Canberra on Saturday 29 February 2020 with 70% producing a sale, up from 40% on the same weekend last year. The median price for properties sold was $794,000, reported Domain in preliminary results.
Canberra and ACT property outlook 2020
The median dwelling price in Canberra is now $631,862, up 1.1% over the last three months and 4.1% over the last 12 months.
The median house price in Canberra is now $704,865, up five per cent over the last 12 months. The median apartment price in Canberra is now $445,354, up 0.9% over the last year.
In Canberra property investors are enjoying gross yields of 4.3% per year on houses and 5.8% on apartments reported CoreLogic. Total returns on houses in Canberra are now about 9.6%, including the yield and price growth said CoreLogic.
Part of the reason for those strong returns are the very high rents being paid in the Canberra market.
Canberra rents second only to Sydney
Canberra may be an undervalued property investment market according to some investors and commentators.
Canberra’s median rent is now $556 per week according to CoreLogic. That is just $18 less than Sydney’s median rent of $574 in the latest data released this week. Melbourne’s median rent of $458 is now $98 lower than Canberra’s median rent. The national median rent is now $440 in Australia, $116 lower than Canberra’s median rent.
Canberra’s median rent per week rose 2.1 per cent in the last three months. Canberra property values are still far less than those of Sydney and comparable to Melbourne.
Michael Montelibano, from Colliers International said Canberra is a great place to invest.
“Rental growth in Canberra is also very strong thanks to the solid local economy.”
Chris Antos, an agent at commercial property agency Laing+Simmons said population growth in Canberra is not as strong as in other big cities.
Corelogic head of research Eliza Owen said a decline in new construction in many parts of Australia was partly behind the surge in rents across the nation.
“The rental market is starting to gain momentum again as the investment properties from the previous upswing are absorbed, and new development levels have moderated, Ms Owen told RiotACT.com
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