Canberra’s property market is set to continue it’s steady performance in 2018.
While Canberra property prices has felt some impacts from the federal government’s plans to cut the public service, it does not spell the demise of the capital’s workforce.
“As is typical, when time passes by during the first term of a federal government, it finds it more difficult to implement cuts than intended,” says Linda Phillips, economist for Propell.
The Australian Capital Territory still holds the second lowest unemployment rate in the country, second only to the Northern Territory.
Phillips says that as the situation is returning to normal, some growth in 2018 should be expected.
“Canberra real estate in general has better prospects for investment in the next year, though newer properties, or those with redevelopment potential, will do better than average.”
Overall, Canberra property 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.
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 with the ACT economy affected by public service cuts.
Because the entry level price for Canberra investment property is quite high relative to opportunities in Melbourne and Brisbane investors should do their research on value for investment outlay before proceeding locally.
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