Avoid Investing in Canberra? (The Libs Reducing Public Sector Employment).

Canberra's last property downturn took place in 1996, when the Howard Liberal government was elected. Public sector cuts resulted in fewer jobs and many people ended up selling their houses into the face of a soft market. Vacancy rates increased as owners moved out and the market for new tenants fell.

Louis Christopher of SQM Research has said that rents in Canberra are falling. The implications are interesting and suggest stagnancy or underperformance in house prices. Of course this may change if a new free spending government is re-elected next election.

I am curious about what ACT residents think will happen to Canberra property prices?

Christopher's research can be found here: http://www.sqmresearch.com.au/graph_median_rent_weeks.php?region=act::Canberra&type=c&t=1

Disclaimer: I lived and studied in Canberra. I love the place even though I own nothing there.
 
Nothing new here.

As Nemo said - there's been quite a few posts on this topic already.

From my perspective - I've just had three of the busiest months I can remember - including a lot of ACT settlements so some people still remain confident in the market :)

Cheers

Jamie
 
From what I've seen, most of the falling rents are in areas where there are now a big oversupply of apartments.

I remember when I first moved to Canberra three years ago, the open houses for apartments in central areas were very popular (at least ten people/couples at each) with pretty much all going for more than the advertised rent. We were only able to get one because it was furnished and had a bit less interest than the others.

Fast forward to now and most owners are reducing the rent to find tenants due to all the big developments that have gone up since then.
 
From what I've seen, most of the falling rents are in areas where there are now a big oversupply of apartments.

I remember when I first moved to Canberra three years ago, the open houses for apartments in central areas were very popular (at least ten people/couples at each) with pretty much all going for more than the advertised rent. We were only able to get one because it was furnished and had a bit less interest than the others.

Fast forward to now and most owners are reducing the rent to find tenants due to all the big developments that have gone up since then.
Agreed.

Canberra has long had a very low vacancy rate. In recent years, there's been so much stock come on, especially high rises. Rents, which were at a high level, have dropped back over the past few years.

But a house or a property with a little bit of space won't be vacant long. I've had very little vacancy in my cottages- despite being quite close to some of the new high rises. A lot of those properties also have a very small bedroom area.
 
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