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Canberra Housing Prices, as good as it gets?

By eblue - 16 March 2010 88

Housing prices in Canberra continue to soar, as evident today by the sale of a three bedroom house in Canberra’s inner North for almost $700,000. This begs the question – will Canberra’s property prices become affordable to the hundreds of first home buyers in the region? If not, how can this be achieved?

In the short term, its anyone’s guess as to whether prices will fall or continue to rise. What is certain is that $700,000 can buy you a two bedroom ocean front property on the NSW north coast; a beautiful three bedroom unit on Melbourne’s North Bank Yarra, or a high level, two bedroom unit overlooking the Brisbane river and a stone’s throw to the CBD.

What’s Your opinion?


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88 Responses to
Canberra Housing Prices, as good as it gets?
mistertim 9:14 pm 16 Mar 10

I was at the auction referred to in the article. It may not have been big, but it was a nice house on a quite decent-sized block. It’s probably in the nicest street in its suburb.

all it would take is one solid round of PS budget cuts (and subsequent layoffs) to bring the whole house of cards tumbling down.

Historically when this happened (i.e. 1996) prices fell by only, I understand, 3% on average and the inner North didn’t fall – merely stagnated.

on a happier note, you can probably rent that 700k house for around 450 a week.

The real estate agent suggested $550 per week, but I think the buyer was actually looking to move in, not invest.

The other factor here is that Canberra has, I think, the highest average wages of any city in Australia. That means, proportionally, a whole lot more people than in Sydney or Melbourne who can afford higher priced houses.

gun street girl 9:09 pm 16 Mar 10

screaming banshee said :

gun street girl said :

Canberra is hardly a “major city”. It shouldn’t be compared to the likes of Sydney or Melbourne, because, well, it’s not Sydney or Melbourne.

What is it exactly that Sydney and Melbourne have that we dont? Honest question, what in you mind makes them a major city and Canberra not?

A much greater size and population to start with, and the social options and infrastructure that comes with that. I’ve lived in both in the past; and really, comparing Canberra to a large city is like comparing apples with oranges. Similarly, I wouldn’t compare Canberra to Paris, Tokyo or London!

urchin 8:45 pm 16 Mar 10

@ Tony, sure, realigning expectations is fine. However a search for 3 bedder houses from 0 to 350k gives a whopping… 0 results. one auction and two houses (no land to put em on).

so if you accept that FHBs should be looking at spending 400k plus, yeah there is a very small number of 3 bedroom houses available. if you want to have a life and a house, you have much fewer options.

It’s not about FHBs being spoiled brats – look at a chart of housing price growth in the ACT since 2000 – from a median of $175k in 2000 to 505k in 2010? Nearly tripling in 10 years? Nah, that’s perfectly normal and the people who complain about it being overpriced are just greedy, whinging gen x-ers who don’t know the meaning of the word save? I don’t think so.

housebound 8:39 pm 16 Mar 10

OK then. Who here reckons that house prices will tumble, say, within a decade?

krats 8:37 pm 16 Mar 10

You have more money than sense.Go north you stupid public servant.looking at the ocean is heaps better than watching the neighbors washing dry!!!!!!!

stereo henry 8:36 pm 16 Mar 10

It’s time to throw the Griffin legacy out the window and open up the tracts of land that separate the Canberra satellite cities. It’s absurd that each Canberra city is surrounded by bush when there are acute land shortages and a rental crisis.

jellen 8:35 pm 16 Mar 10

Or $700k will buy you three large and modern houses in many major US cities. Next year you might even get 4 American houses for that money.
Tulips, the East India company, poseidon shares, Japan’s miracle economy, dot coms, and sub-primes all went one way, but this time it will be different for Aussie house prices.

screaming banshee 8:34 pm 16 Mar 10

gun street girl said :

Canberra is hardly a “major city”. It shouldn’t be compared to the likes of Sydney or Melbourne, because, well, it’s not Sydney or Melbourne.

What is it exactly that Sydney and Melbourne have that we dont? Honest question, what in you mind makes them a major city and Canberra not?

gun street girl 8:07 pm 16 Mar 10

screaming banshee said :

Seriously though, not really fair to make comparisons to coastal or unit properties. Perhaps you’d like to draw a comparison to a similarly aged free-standing property a similar distance from the CBD of other major cities.

Canberra is hardly a “major city”. It shouldn’t be compared to the likes of Sydney or Melbourne, because, well, it’s not Sydney or Melbourne.

georgesgenitals 7:56 pm 16 Mar 10

This is really simple. Supply and demand. And right now we have the highest average incomes in the country, and a big supply problem.

urchin 7:55 pm 16 Mar 10

canberra is absurdly overpriced. new builds have outpaced population increase by a considerable margin, meaning that there is–or ought to be–a lot of slack in the market. Certainly there has been no changes in the demand side of the market to justify the enormous jump in prices over the past year. i reckon we are seeing the effects of the fhog boost last year. people sold overpriced hovels to unwitting fhbs who had their deposit handed to them by the gov’t, and now those people are upgrading to less-hovel-like (but no less overpriced) houses in more central suburbs.

all it would take is one solid round of PS budget cuts (and subsequent layoffs) to bring the whole house of cards tumbling down. alas, as rudd is in charge & his idea of a “horror budget” and “razor gang” and taking a “meat axe” or “blow torch” to the budget is to simply borrow hundreds of billions, that ain’t gonna happen.

on a happier note, you can probably rent that 700k house for around 450 a week. and the lucky landlord can look to a gross return on his/her investment of 3.3% annually (deduct property management fees, repairs, rates, water connection etc from that). There is no logical reason for the recent upswing. if people are lucky we will be looking at an extended stagnation in prices. if they are unlucky things will fall apart.

Tony 7:44 pm 16 Mar 10

A search on allhomes.com.au shows 98 house with atleast 3 bedrooms, between the price of $100,000 and $450,000.

First home buyers needs to realign their expectations and build their way up to their dream home. I’m in my first house and have been here for 5 years; starting low is not that bad.

deejay 7:26 pm 16 Mar 10

Depends on what you mean by Canberra. If you’re including Canberra region, you can have a beautiful 3br house in Goulburn for $250K or less, and in Yass, the early $300s. I know not everyone likes to commute, but it is possible to work in Canberra and own an affordable home.

screaming banshee 7:09 pm 16 Mar 10

Ooh ooh me first, “I’m going to wait until prices drop to half what they are now then I’ll buy a bargain and all you people buying houses at todays inflated prices are going to realise that you’ve been ripped off, and I’ll be soooo smart and you’re all sooo stupid” ROFPMLMAO

Seriously though, not really fair to make comparisons to coastal or unit properties. Perhaps you’d like to draw a comparison to a similarly aged free-standing property a similar distance from the CBD of other major cities.

Tetranitrate 6:04 pm 16 Mar 10

On the whole Canberra’s prices aren’t as outright ridiculous as say, Sydney’s as they’re actually somewhat justified by the rents. If you look at the rental yields in Sydney they can be ridiculous low, especially when compared to the interest rates available on savings accounts.

Housing in Australia is some of the most expensive on the planet though.

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