The Canberra market

[geoffw]

I guess this was quite predicatable given the situation, but here's confirmation.

From Independant- http://www.indgroup.com.au/market_update.php

Mostly sales stuff, but interesting-

Rentals reach an all time low
Independent Property Group has recorded an all time low with rental vacancies for February at 0%. In addition the number of lettings were up in February and rents continued to increase in line with market value by $20 per week on average.

Independent Property Group is still receiving multiple applications on properties across Canberra with the demand particularly strong from University students looking at the less expensive end of the market and for shared accommodation.

Confirmation- I've started to get phone calls from people who know I have properties, and who want accommodation.

And advice from an agent is that the pressure is on prices- "perhaps artificially".

 

[Bill.L]

Thanks for that Geoff

This is the type of information that is really appreciated, keep up the good work.

bye

 

[ally]

Dear Geoff

My hubby and I were in Canberra in early Jan looking to buy an IP. After looking at several properties, mainly close to the CBD we were most keen on a 3 bed unit in Condamine St, Turner. Asking price was $300K and rent was $365 per week. As it turns out, we were a little scared off after the fires, as this was to be our first investment property.

Do you think we have missed the boat on Canberra? My husband is down there semi - regularly. He has just returned from one week working down there and he is going back on Friday for another week. Should we keep investigating?

Do you invest in Queanbeyan? Recently I have seen advertisements in Sydney property magazines for units there, with +ve cashflow. Older style, red brick from the photo.

Any thoughts would be apppreciated.

Regards
Ally

 

[WillG]

Hi ally,

There are a lot of units going up in Turner, O'Connor, Braddon, Kingston .....

Is the unit you propose 'unique' in any way ?

Cheers,
Will

 

[geoffw]

ally,

It's hard to know what's going to happen in the future. There does seem to be a big demand still. I had an agent do an appraisal for one property- value seems to have gone up well in 12 months- aided by cosmetic reno work. He says he's got a far bigger list of people looking for properties than he has properties. But of course, there's an extra 500 households on the market- at least for rental, if not for buying. (and btw, some of the higher prices for burnt blocks is dropping now).

Certainly a lot of people did not predict the growth we have had.

I would not be looking at units- there are a lot in the pipeline- hence Will's question (I think). You could get a small house not too far out for that price.

Yes, I also invest in Queanbeyan- I have a block of 8 (+ ppor + house IP in Jerra). Units have gone up strongly recently- and rent is going up as well. Some 1BRs which would have been $60K some months ago (even $45K 2 years ago) are selling for up to $80K. Rent would be about $110 for those now.

Units in Qbn are a niche at the bottom of the market- they are not likely to be in competition with new high priced stock in Canberra. But because of that you are more likely to have tenant trouble.

 

[ally]

Thanks Geoff for your reply, and Will for your interest.

I am aware of the many new developments that are going on around Canberra, near Turner Braddon and so forth. The unit we did consider we thought was a little different, being 3 beds with ensuite and also double storey. The main bedroom was massive and was upstairs with it's own bathroom and dormer windows. Having said that, the property has since been sold.

I must say the website allhomes.com.au is fantastic. If only they had something similar for NSW and QLD. The data and statistics are so helpful.

If demand outstrips supply I guess this drives prices up. I think I would prefer being the only one 'shopping' in a particular area. I will keep my eye on it, and see what happens over the next few months. Meanwhile I will carry on researching other possibilities too.

Thanks again for your valuable insights.

Ally