Canberra townhouses

[cimbom]

Hello,

Was just wondering what others thought about the short to medium term prospects for growth for townhouses in Canberra? I know there's a huge oversupply of apartments and rents have plummeted. I'm a bit unsure about townhouses though. I am thinking of those mainly in areas with good amenities, close to shops, good schools and employment and sort of centrally located (not in new suburbs).

What are your thoughts?

Thanks

 

[Jamie M]

Hiya

Personally - I put them in the same category as apartments.

There's an oversupply of them too. Not easy to sell - and not the easiest to rent IMO.

In Canberra - I'd stick with detached homes all the way.

Cheers

Jamie

 

[S1mon]

they are better than apartments, especially with a reasonable bit of outdoor space. still a few too many as Jamie said but easier to rent imo.

 

[S1mon]

maybe canberra has turned the corner?

unlike i expected, no harsh pub service cuts in the budget...pub service now allowed to hire again (though they were probably always employing contractors but now can employ cheaper permanent staff). Got to be a boost for confidence, rather than the self-fulfilling doom and gloom prophecy that has, imo, held the market back for years.

also, quoted from here

Biggest Decrease In Rental Stock (last 12 months)

Canberra ACT (31% less)
Port Macquarie NSW (30% less)
Muswellbrook NSW (26% less)
Orange NSW (22% less)
Gold Coast QLD (21% less)

 

[Jamie M]

The market for properties in established areas is pretty hot. There's not much stock - and it's getting snapped up quickly. Looks like Mr Fluffy is having an effect.

I keep a close eye on the Inner North market - prices are rising and properties are selling quickly. There's been a couple of recent sales on my street where the vendors got excellent results.

I know I have a vested interest in the local economy - but Canberra does look like it's at the start of an upswing.

Cheers

Jamie

 

[eyespy]

Do you still think older apartments are a no go ? Have seen good 2 bedders in say watson, close to the city on offer for late 200s and rent about 300 ?

 

[Nemo30]

I agree. I think Canberra has been flat while there has been uncertainty around jobs, however starting to see more confidence. First quarter results were second highest behind Sydney (but amongst the lowest for the year).

 

[Jamie M]

Do you still think older apartments are a no go ? Have seen good 2 bedders in say watson, close to the city on offer for late 200s and rent about 300 ?

Decent yields but I can't see a whole lot of scope for growth. Those looking to buy into the area usually want houses over small units.

Cheers

Jamie

 

[Redom]

I agree. I think Canberra has been flat while there has been uncertainty around jobs, however starting to see more confidence. First quarter results were second highest behind Sydney (but amongst the lowest for the year).

Interesting question Nemo - not sure where they fit into the piece relative to houses and units. In terms of price growth data, its bracketed with units.

Wasn't there just a 3% quarterly fall in unit prices corresponding to the rise in house price rises? Could be wrong, but i recall an email from an ex-collegue worrying about his OTP valuation.

I agree with Jamie - houses are doing well, time will tell whether its a shorter term boost from Mr Fluffy or reflecting greater confidence, etc.

Units are slow and are likely to be slow for the next few years. The oversupply is coming online this year, next year and the year after. Can see that putting a damper on the unit market for a while yet.

Its becoming very attractive for first home owners though - with rates this low can get into 1 bedders for <$250 p/w after all costs now. With the grant, very very small upfront cost (~$5-20k)

Cheers,
Redom

 

[Jamie M]

Its becoming very attractive for first home owners though - with rates this low can get into 1 bedders for <$250 p/w after all costs now. With the grant, very very small upfront cost (~$5-20k)

Cheers,
Redom

Yep.

While I'm quite bearish on ACT units and OTP in general - I can see how some FHB's can do quite well out of them - particularly those that qualify for concessionary duty and buy into smaller developments.

Cheers

Jamie

 

[S1mon]

The market for properties in established areas is pretty hot. There's not much stock - and it's getting snapped up quickly. Looks like Mr Fluffy is having an effect.

I keep a close eye on the Inner North market - prices are rising and properties are selling quickly. There's been a couple of recent sales on my street where the vendors got excellent results.

I know I have a vested interest in the local economy - but Canberra does look like it's at the start of an upswing.

Cheers

Jamie

yeh I agree. I watch inner belco and seems to going well. Next door just sold after first open, a weekday open, for a great price.

 

[Azazel]

A friend of mine is looking at buying a townhouse at the moment, hopefully will be able to get him a decent discount.
Houses in the lower end in most areas are selling pretty quickly. Most of the cheapies are already gone. I'm sure Canberra is going to surprise people this year. Also not sure why the 'experts' keep talking up Brisbane and talking down Canberra. I guess the same 'experts' will be on Canberra shortly like they called it