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%
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