Canberra Property Investment Overview

While steady migration and high disposable incomes continue to influence demand for property investment in Canberra, affordability is waning, thanks to rising prices over the past couple of years. Limited supply of dwellings in the Canberra property market recently has resulted in a shortfall of housing in the ACT. However, slowing population has eased pressure in what is still a tight housing market. Vacancy rates have edged up marginally and rental growth has slowed. The incoming federal government has also prioritised spending away from the public sector.

Despite this easing of growth, the labour market has remained solid, employment growth is above 2 percent per annum and the unemployment rate is stable at 2.7 percent. Population growth is slowed and a significant outflow of persons to other states has occured.

Fundamentally Canberra is a city that has a high proportion of non or semi permanent population. The owner occupier market has softened with price growth now relatively flat, slowing to 7 percent in annual terms. Negative sentiment has overwhelmed solid fundamentals and what we anticipate for the next couple of years is diminished demand for the residential property market in the ACT.

Despite the general slowing down of the market, there will be opportunities in some sectors, investors will need to be very selective and do their homework.

Contact us for a free information pack, or to arrange an obligation free consultation.

Back to Home Page or Request Free Information Pack