CANBERRA’S apartment market won’t do as well in 2013 as supply is now outweighing demand and the typical buyers – investors, are wary of the potential for softening yields, says Sydney real estate guru John McGrath, pictured.

In his “Autumn Update”, a regular assessment of the ACT market, he says: “There is some good news for apartment buyers who will be spoilt for choice. Savvy downsizers are taking advantage of this and the larger apartments in new developments are gaining some interest from this cashed-up sector.”

However, he is predicting a major slowdown in sales activity from about mid-year, with a pick-up following the election.

“Last year was a tough year for Canberra, with sales volumes 47 per cent down on the five-year average, according to RP Data figures. Buyers and sellers alike were happy to sit on their hands as the market continued its correction and an oversupply became evident in the apartment sector,” he says.

“People were also mindful that a Federal election was just around the corner and this always makes the locals nervous, with a huge proportion of Canberra’s population employed in the public service.

“Now that we have a firm poll date, locals are seeing an opportunity to buy or sell now before the inevitable slowdown mid-year. Prices remain softish and people are realising the benefits of buying and selling in the same market, especially with interest rates so low. We’re seeing increased sales activity, with more people attending opens and solid prices being achieved for quality homes.

“Overall, house prices did improve by 2.4% in the year to January, with apartments up 6.6%, according to RP Data.”

HIGHEST GROWTH

Houses

HARRISON 30%

COOK 19%

BONNER 13%

CALWELL 12%

GRIFFITH 9%

Apartments

DUNLOP 38%

REID 22%

WANNIASSA 17%

CITY 15%

O’CONNOR 14%

HIGHEST NUMBER OF SALES

Houses

KAMBAH 157

MACGREGOR 137

DUNLOP 96

NGUNNAWAL 95

FORDE 95

Apartments

KINGSTON 191

BRADDON 122

BELCONNEN 116

LYNEHAM 111

TURNER 106

LOWEST DAYS ON THE MARKET

Houses

WARAMANGA 35

GILMORE 36

HIGGINS 42

SCULLIN 43

LATHAM 44

Apartments

SCULLIN 34

MACQUARIE 38

FLOREY 41

EVATT 41

THEODORE 49

HIGHEST RENTAL YIELD

Houses

CHARNWOOD 5.8%

THEODORE 5.8%

MELBA 5.6%

RIVETT 5.6%

FORDE 5.6%

Apartments

FRANKLIN 6.4%

GUNGAHLIN 6.4%

FORREST 6.1%

PALMERSTON 6%

BRADDON 6%