A new report says that the Belconnen district has the most property hotspots with the unit market being particularly strong in the suburb of Belconnen. Some of the suburb’s apartment towers are seen here from across Lake Ginninderra. Photo by Glynis Quinlan.
The Belconnen district has the biggest number of Canberra hotspots tipped to see an increase in property prices but the Tuggeranong district is emerging as a challenger according to a recent report.
The latest Price Predictor Index from hotspotting.com.au lists six growth markets in Belconnen as including Bruce, Belconnen, Flynn, Hawker, Higgins and Macgregor.
These suburbs have been identified as ‘rising steadily’ while other Belconnen suburbs are also showing a ‘steady sales performance’.
However, the quarterly survey reveals that the Tuggeranong district is starting to challenge Belconnen’s status as market leader, with five Tuggeranong suburbs showing growth trajectories. These are Banks, Calwell, Condor, Gordon and Kambah.
Writing in the Ryder Report, Hotspotting founder and property expert Terry Ryder said that quarterly sales in the suburb of Belconnen, where the unit market is strong, have risen from 65 to 72 to 79 – and now to 90 in the latest quarter.
However, he said there are now growth clusters right across the metropolitan area and the Canberra market is the strongest it has been since the surveys began three years ago.
“The number of Canberra suburbs with rising markets has grown from 10 to 17 to 20 to 22 in the past four quarterly surveys,” Mr Ryder stated.
Canberra’s strong market recommended for investors
Mr Ryder said that Canberra doesn’t often attract national media attention for its property market and it seldom flickers across the radar screens of most investors – but that it deserves consideration.
“A number of key markers point to growth: the strength of the ACT economy, the low vacancies and strong rental growth, the pick-up in sales activity and the price growth in the Top End suburbs,” he said.
The Canberra market is the strongest it has been since the quarterly surveys began three years ago.
Mr Ryder said that in the past 12 months there has been a steady improvement in the national capital, quarter by quarter – and there have been further advances in the Spring survey for the Price Predictor Index.
He said that in the previous (Winter) edition, he commented that the Canberra market was “the busiest it’s been since the Price Predictor Index surveys started three years ago” but that in the latest (Spring) edition, it’s even busier.
“Vacancies remain below 1 per cent – only Hobart has lower vacancies among the capital cities – rents are rising strongly (more so than in any other capital city) and there is evidence of solid price growth in some sectors of the market.
Canberra has seven suburbs with median prices over $1 million
“This is particularly so at the top end of the market. Canberra currently has seven suburbs with median house prices above $1 million and all but one has recorded significant growth in their median prices in the past 12 months.
“The median price for O’Connor has risen 20 per cent to $1.17 million, Red Hill is up 15 per cent to $1.45 million, Garran rose 17 per cent to reach $1.05 million, Deakin 11 per cent to $1.32 million and Griffith 10 per cent to $1.52 million.
“The strong Canberra performance has been built on a local economy that is always solid, underpinned by high average incomes and low unemployment levels.
“The ACT consistently ranks in CommSec’s State of the States report as the nation’s third strongest economy behind New South Wales and Victoria.”
The strength of the Canberra property market was recently reinforced by the CoreLogic September home value index results which showed that Canberra’s house prices continue to rise to record levels despite falls in the major markets of Sydney and Melbourne, as well as in Perth.
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