Canberra Market Outlook?

[TheMarket]

Hi

I just found this site via google search and want people who has experience in
Properties think what is the outlook for Canberra in the next 12-15 months?

The reason I ask is I want to move to Central area like Woden or some part of Inner south but I found the price is ridiculously high and I can wait for a slow down rather than jump in if that is the prevailing opinion.

I am in no hurry..Interest rates and stuff doesn't affect me much...the overall price I pay is more important..

I own my own home, no debt, I dont invest in properties so I know little about its in an out apart from owning my own place...and will have more than 20% deposit for the next one not counting my PPOR...

 

[geoffw]

I've got properties in Canberra and Queanbeyan and I'm not optimistic.

1. Prices have dropped slightly recently when they've gone up elsewhere.
2. There's a big oversupply of units, especially on the Northside- Belconnen, Bruce and Northbourne Ave.
3. Publi service jobs have been cut back in the past one to two years- and even if there is an unlikely no change in government they are likely to be cut back even more strongly. Canberra is less dependant on PS jobs than in decades past when there were cutbacks, but will still lessen demand for accommodation IMO.

 

[cimbom]

Geoff, do you think there will be a difference in overall performance between apartments and townhouses?

 

[geoffw]

I don't know.

I've been getting some feedback that some of the new apartment complexes have very small bedrooms. Anything with a semi reasonable bedroom size may have a bit of desirability.

I have two cottages in North Lyneham. They let reasonably quickly even when the newly opened high rise on Northbourne and Mouat was flooding the Lyneham rental market. The small garden space and larger bedrooms I think made a real difference, despite the property being 25 years old and pretty ordinary outside.

 

[cimbom]

I was thinking the same although we are looking for a PPOR at present and not an IP. It would be a good point of difference if we do buy one and convert it to an IP down the track

 

[TheMarket]

Thanks
I hang off and go to a few auctions and opening in the next 12 months and see how things are going.

A drop of 5-10% would be good for me because that the price I'm prepare to pay from the current going price for some place I like...

 

[jract]

Interesting discussion and I'm in the similar position - hoping the price can be down a bit after the election - and I'm aiming to have a self-living property by the end of this year.

Anyone has idea and tips of buying service apartment? Saw a nice deal for Bentley Suites in Forrest. I'm also looking for unit/apt in inner north or inner south.

Thanks guys!

 

[simonr]

Interesting discussion and I'm in the similar position - hoping the price can be down a bit after the election - and I'm aiming to have a self-living property by the end of this year.

Anyone has idea and tips of buying service apartment? Saw a nice deal for Bentley Suites in Forrest. I'm also looking for unit/apt in inner north or inner south.

Thanks guys!

I'm not an expert, but have heard ongoing costs from serviced apartments can really eat into your yield, plus likelihood of CG low

 

[Jamie M]

Anyone has idea and tips of buying service apartment? Saw a nice deal for Bentley Suites in Forrest. I'm also looking for unit/apt in inner north or inner south.

Thanks guys!

Hiya

They rarely make for a good investment.

Need a decent deposit and future growth is limited.

I'd go for a normal apartment over a serviced apartment.

Inner north is a good choice I'm biased though - I live out that way.

Cheers

Jamie

 

[laurieload]

We have one IP near Belconnen. I made some house purchase inquiries with a couple of REA a couple of days ago and they haven't left me alone since. Things seem very slow. Our own broker (in ACT) says there has been in a big drop off in prices especially in the price range you are looking but expects it to drop lower before it gets better. So you could just offer what you'd be prepared to pay regardless - you might be lucky.

 

[geoffw]

But then this:

Canberra house prices hit new peak

 

[Jamie M]

We have one IP near Belconnen. I made some house purchase inquiries with a couple of REA a couple of days ago and they haven't left me alone since. Things seem very slow. Our own broker (in ACT) says there has been in a big drop off in prices especially in the price range you are looking but expects it to drop lower before it gets better. So you could just offer what you'd be prepared to pay regardless - you might be lucky.

It's better to be a buyer than a seller in Canberra at the moment - that's for sure.

I haven't been seeing big drops in prices though. Possibly at the higher end - but there's still quite a bit of competition at the lower to mid end.

Location also comes into play - properties in the Gungahlin area around the $600k mark are in abundance and are harder to sell.

Cheers

Jamie

 

[laurieload]

But then this:

Canberra house prices hit new peak

Well that's interesting.