Canberra rental market sooo bad?

[property_girl]

I've lived in and around Kingston for the last 30 years, and own two units in Kingston. Unfortunately--or fortunately--I know just about every problem that exists in every apartment block at the foreshore. Unfortunately, Canberra's builders don't have the best reputation and the foreshore apartments are known for having corners cut. I had lunch there today, and the restaurant strip on the waterfront is nice. But I think that is the only nice part about the foreshore. Older Kingston is much better, with much better built units as well.

 

[Redom]

Yikes. Thanks.

Will dig deep into builders rep thoroughly if I (or anyone I know) decides to purchase.

 

[Francesco]

I've lived in and around Kingston for the last 30 years, and own two units in Kingston. Unfortunately--or fortunately--I know just about every problem that exists in every apartment block at the foreshore. Unfortunately, Canberra's builders don't have the best reputation and the foreshore apartments are known for having corners cut. I had lunch there today, and the restaurant strip on the waterfront is nice. But I think that is the only nice part about the foreshore. Older Kingston is much better, with much better built units as well.

I can relate with that! It will appear as a rant if I cite instances of amateurish defects in the existing PPOR that I have to rectify! Not all are like that but somehow I have a building which seems to epitomise poor workmanship.

 

[geoffw]

Cycle, cycle.

Absolutely.

It's been a very long cycle. We've had low vacancy rate for many years- and then rents dropping slowly over the last 2-4 years.

There's a lot of high density which has been built in recent years, and still being built.

 

[property_girl]

Francesco: I know what you mean--I have to control myself or I start ranting about Canberra's builders. Must keep in mind that there are plenty of good ones too. I think self-regulation doesn't work. Building certifiers are too cosy with the builders--they won't find fault with anything if their next job depends on it. Companies are formed to build a complex and then fold when the complex is built, so effectively owners have no one to turn to when serious defects are found. Building licences are given too easily. Many builders here have never dirtied their hands with a tool. Someone who has been a supervisor on a building site for a couple of years gets a builder's licence, but it doesn't mean he knows how to build. Builders don't even attend sites of houses they are building--they make phone calls and pay the cheque, but there is no supervision of trades. see, I have ranted.

 

[VYBerlinaV8]

If you're talking about Kingston Foreshore, to rent might be okay but be careful if you're thinking of buying any unit there. Flooding basements, bathrooms with no waterproofing, windows falling out, rain running in between walls. The lists go on. The ABC did a report on the building problems, mainly at the Foreshore but generally in Canberra. One newspaper has said:
What a shame the entire development is in fact a wasteland of empty streets and architecturally stunted structures.
No passing traffic, no nature strips. Developers have built the maximum number of units possible, with not enough parking. Much better value are the apartments built pre-2010 on the other side of Wenthworth Avenue.

Quoted for emphasis. This post is exactly right.

 

[Redom]

Absolutely.

It's been a very long cycle. We've had low vacancy rate for many years- and then rents dropping slowly over the last 2-4 years.

There's a lot of high density which has been built in recent years, and still being built.

Hmm interesting perspective Geoffw. It feels like the rent drop off was more sudden than a slow drop-off?

Quoted for emphasis. This post is exactly right.

Noted. Thanks. Must admit, this thread is quite worrying. My partner and I were getting quite dreamy eyed (emotional purchase) over a potential lifestyle there in the next few years.

 

[geoffw]

It wasn't a sudden (or even a slow) drop so much as flat rents for several years after good rises over many more years. Just a return to equilibrium perhaps.

I have a house in Jerrabomberra and had two cottages in Lyneham. The house has been flat for a few years and I had to drop the rents in Lyneham a little to get tenants two years ago.

 

[property_girl]

Just a return to equilibrium perhaps. .

I agree--it's swings and roundabouts. You can expect an influx of gov workers when Labor gets into government. However, with the Libs in power, property prices drop and rental vacancies increase because of the public servants leaving town.

 

[marcfranc]

If you're talking about Kingston Foreshore, to rent might be okay but be careful if you're thinking of buying any unit there. Flooding basements, bathrooms with no waterproofing, windows falling out, rain running in between walls. The lists go on. The ABC did a report on the building problems, mainly at the Foreshore but generally in Canberra. One newspaper has said:
What a shame the entire development is in fact a wasteland of empty streets and architecturally stunted structures.
No passing traffic, no nature strips. Developers have built the maximum number of units possible, with not enough parking. Much better value are the apartments built pre-2010 on the other side of Wenthworth Avenue.

I'm thinking of buying off the plan at Kingston Foreshore, because I like atmosphere (which has improved dramatically over recent months) and the streetscapes. What I don't like about Canberra is many of its characteristics that seem to please many long-term residents (decentralised layout, empty paddocks and a general lack of activity in the central areas). One of the Foreshore's features that attracts me is the lack of 'nature strips'. Where I'm currently renting in the inner north, the 'nature strips' are litter-strewn dust bowls -- seemingly the result of the obession that Canberra people have, even in inner Canberra, with not parking on the streets. So everyone parks on the nature strips, particularly tradies, and the result is a mess.

 

[Spades]

This is imo only,i'm finding the market soft across the board,not only act.

Good luck but afaik,you have to factor in the whole picture.

Cheers Spades.

 

[geoffw]

I agree--it's swings and roundabouts. You can expect an influx of gov workers when Labor gets into government. However, with the Libs in power, property prices drop and rental vacancies increase because of the public servants leaving town.

It's a bit more than that I think.

1. Labor was already starting to cut back on the public service.

2. Vacancy rate was still very low in the Howard years.

3. It's supply as well as demand. In this cycle there's a huge supply of high rise units on the market.

 

[cimbom]

I'm not sure why most of those high rises were even approved. There's nothing to suggest that level of demand in Canberra

 

[Freddie Mac]

I'm not sure why most of those high rises were even approved. There's nothing to suggest that level of demand in Canberra

Kind of like inner Brisbane at the moment. Vacancy rates in some of those areas are already at multi-year highs. Could be some bargains to be had in a couple of years

 

[Spades]

Same in vic,i'm seeing alot of high rises in the top end and lower end.

Low rates imo are the sweetener,but what's going to be end result?

I'll let you ponder...

Cheers Spades.

 

[geoffw]

I'm not sure why most of those high rises were even approved. There's nothing to suggest that level of demand in Canberra

They seem to be selling.

Although the project on the site of the Jamison Inn went broke, there's units in Belconnen which have been resumed. I guess people are buying- the convenience of being so close to the mall and transport hub must be strong.

 

[Francesco]

Francesco: ...I think self-regulation doesn't work. Building certifiers are too cosy with the builders--they won't find fault with anything if their next job depends on it. Companies are formed to build a complex and then fold when the complex is built, so effectively owners have no one to turn to when serious defects are found. Building licences are given too easily. Many builders here have never dirtied their hands with a tool. Someone who has been a supervisor on a building site for a couple of years gets a builder's licence, but it doesn't mean he knows how to build. Builders don't even attend sites of houses they are building--they make phone calls and pay the cheque, but there is no supervision of trades. see, I have ranted.

For a 'girl' you are not young in properties!

 

[property_girl]

For a 'girl' you are not young in properties!

lol, no, not young--just young at heart. don't even know why I gave myself that moniker.

 

[Harro]

I have read this thread with interest. However I am still unsure as to why anyone would choose to live there. Possibly because they have an excellently paying job, but why else? Foreshore of what? Owning an IP there may have been good when it was full of public servants, but now?
Please outline to me the positives of Canberra, because I simply don't see any.

 

[property_girl]

Harro: imho, it is easily the most liveable city (apart from maybe Perth); great place to raise children; easy to get around (doesn't take more than 20 mins to get anywhere); lots of green space; lots of great cafes, restaurants etc; lots of things to do, eg National Gallery; great schools. I'm originally from Melbourne. I really like Melbourne and Sydney, but I love Canberra.