Canberra Property Investment

The Canberra property investment market is seeing demand loosely keeping pace with supply. The Housing Industry of Australia (HIA) in its housing to 2020 report estimated that the higher rate of home building in the ACT in recent years has exceeded demographic demand and reduced the lag accumulated in the first half of the last decade. Modest population growth has eased pressure in the Canberra property investment market. Vacancy rates have edged up marginally and rental growth has slowed. The federal government has also prioritised spending away from the public sector.

Projections: 2012 and beyond

The Real Estate Institute of Australia forecasts moderate growth in Canberra's property market over the coming two years.

RP Data's senior research analyst, Cameron Kusher, suggests that growth will continue but that buyers should not expect too much in the way of returns due to the market moving from a time of strong growth to a relatively flat period.

Canberra, the political centre of Australia's federal government, has seen interesting times recently politically - and that's had an effect on the Canberra property investment market. This uncertainty has continued long after the election result due to the precarious position of a minority government.