Canberra Property Investment

The Canberra property investment market has performed fairly well through 2009 and is expected to continue doing so in the first half of 2010. Despite the general slowing down of sales activity prices have not fallen excessively and will remain steady according to many experts.

With job losses in the ACT limited so far, incomes growth has remained intact and this has supported the local property market in Canberra. Demand is coming back to the market with a strong rise in housing finance approvals in recent months.

Going forward, despite a marked slowing of the economy, unemployment should remain low and income growth should move along at reasonable pace. Consequently, the significant improvements in affordability should see prices well supported in the Canberra market.

Projections: 2010 and beyond

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

"While there are some indications that the upward trend is starting to slow, urgent answers are needed to address the increasingly tough market conditions for first home buyers and low income earners," REIA president, John Hill, said.

"The REIA believes that demand for residential property will continue to be high across the nation in the short to medium term at least, especially in south east Queensland ".

"Whilst there are some signs that the heat in the market is starting to ease, a significant decrease in property prices in the short to medium term is unlikely. We are increasingly concerned about the difficulties faced by low income earners and first home buyer," Mr Hill said.