Canberra presents a solid opportunity for investors moving away from the Melbourne and Sydney markets.
Smart investors seeking growth in Canberra,
Canberra is attracting increasing interest from investors due to its affordable prices and steadily growing population.
New modern developments like The Grande on London, created by developer Geocon, are ideal properties for potential investors.
With apartments starting at $544,900*, over 200 of the 332 homes in the building have already sold.
Buyers appreciate the central location, along with the modern comforts and conveniences that these apartments provide.
Simon Chester, Director of Sales and Strategic Partnerships at Geocon, highlighted the importance of the location.
He stated, “Its location is one of its biggest selling points.”
The development is situated right next to the lake and between two top-ranked universities.
These universities are the Australian National University and the upcoming University of New South Wales campus, which is preparing to begin construction.
Moreover, this property is located in the heart of the city.
In terms of location, it truly doesn’t get any better than this.
Advantages of investing in Canberra
Canberra continues to evolve as its population grows. Additionally, investors from Melbourne and Sydney are exploring alternative locations for their investments.
Home prices in Canberra remain lower than those in Sydney, though the gap is gradually closing. In June of this year, the average house price in Canberra reached $976,360, while units averaged $517,924.
According to Dr. Andrew J. Wilson’s My Housing Market Report, overseas interest in Canberra is also on the rise. In 2023, 8,119 individuals moved to Canberra from abroad.
Mr. Chester highlighted the stability of the Canberra market. A significant percentage of residents work for the federal or local government, which ensures higher job security.
He noted that during Covid, Canberra experienced a decrease in unemployment while other areas saw increases.
Another major attraction for investors is Canberra’s proximity to Sydney. Property prices in Canberra are considerably more affordable, making it easier for buyers to visit.
Moreover, purchasing off the plan presents an enticing opportunity for investors. This approach allows for potentially higher returns on investment in the future.
Mr. Chester explained that buying off the plan is an ideal strategy. Property prices typically increase, but construction costs also rise.
As a result, by the time projects are completed, properties are generally worth more than initial purchase prices.
Canberra compared to major markets: insights
While home prices in Canberra continue to rise, their growth is not as rapid as in other major cities.
The ACT experienced the lowest price increase among all major cities in Australia. In August 2024, home prices in Canberra grew by only 0.43%.
In contrast, Perth saw a substantial growth of 23.24% during the same period.
In Hobart, Canberra, and certain areas of Melbourne, total property listings are over 30% higher than the five-year average.
This increase in listings reflects significant options available for potential buyers.
Eleanor Creagh, a Senior PropTrack economist, noted that this trend suggests buyers will have more leverage.
As spring progresses, the number of new properties entering the market will likely continue to rise.
These indicators suggest that now is a favorable time for investors to consider the Canberra market.
With more choices available and an optimistic outlook for return on investment, property values are expected to grow.
Market trends
Canberra is developing a trendy reputation due to the opening of new restaurants, cafes, and arts precincts.
Additionally, stylish developments like The Grande on London are enhancing the city’s appeal.
While Canberra was once primarily composed of free-standing houses, the past decade has seen an increase in apartment buildings.
These new constructions aim to accommodate a more diverse range of buyers in the market.
Mr. Chester pointed out that suburbs adjacent to the New South Wales border did not exist twenty or thirty years ago.
The availability of land for building houses has changed significantly over the years.
This change has dramatically impacted prices due to the scarcity of available land.
Consequently, many more apartments are being constructed now, as opportunities arise in areas with limited land supply.
Mr. Chester explained that the demand for apartments is growing due to these evolving circumstances.
