Skip to content Skip to main navigation

Lifestyle

We mean business
Contact us today to get results

Canberra the third most expensive city for housing

By Thumper - 30 May 2007 11

The ABC online is reporting that affordable housing in Canberra has hit its lowest level since 1984 and that if nothing is done, housing affordability will not be restored until the year 2022.

Only a few years ago canberra was one of the cheaper places to buy a house.

Mr Stanhope, as our Chief Minister you need to explain why it is all so.

What’s Your opinion?


Post a comment
Please login to post your comments, or connect with
11 Responses to
Canberra the third most expensive city for housing
GBT 11:47 am 11 Mar 11

Why are you commenting on a four year old thread. If you have something to say about the current situation wouldn’t it be more relevant to start a new thread?

dundle 10:55 am 11 Mar 11

FC said :

Nemo –
I think a lot of it is hype.
Its not that unnaffordable.
If you really want to buy and you can’t afford it alone, go joint tenants with someone…or work more to earn more money.

Those options aren’t as simple as you’re presenting them…

the_chosen_one 10:34 am 11 Mar 11

A number above suggested that housing costs are generally extremely high in Western nations, but there is a significant difference between Australia and most nations. For one, land zoning in all Australian cities are extremely wasteful seeming to favor low density areas. This plays a major role in jacking up prices, and is also a rather large reason why housing prices in much of the world is too damn expensive. This is forcing people to live in poor quality (often unsafe) housing and this is becoming more evident in Australia.

Speaking of wasteful land management, there is no better example than Melbourne for instance. One just needs to walk around say, Elizabeth Street in the Melbourne CBD, Flinders Street, hell, pretty much most of CBD (which make up a FRACTION of the metropolitan area), and see severely underutilized areas. The lackluster Elizabeth St area could be brought up to at least 10-15 storeys with existing shopping on the base. One could even fit families into such buildings ah they do in Europe. This can be done throughout Melbourne’s CBD and interestingly, one can radically increase the height on Swanston St, which is arguably one of Melbourne’s main street.

Now add the criminally underutilized North Melbourne, the abandoned factories ( used as storage now) in Footscray, and empty lots around shopping centers throughout the metro, and increase the housing capacity substantially. The population of Melbourne’s tiny CBD could easily be brought up to 300,000 which would have a similar density as Old Toronto (pop of ~700,000 ). I wouldn’t consider Toronto high density considering it has plenty of underutilized land, and the density of that city is only set to increase. You could add many more economically bankrupt inner-middle suburbs which is riddled with extinct manufacturing zones. The truth is, single-use land zones are no longer effective especially with regards to industry. Unnecessary costs due to dancing with traffic during the rush, long range commutes, and a supply line that is more-or-less car-based is not going to make us competitive vs China.

Saying that, Canberra is far from Melbourne, and has a lot more available land. The density of Canberra could be increased drastically, viciously bringing down the cost of property. We are not in Europe’s situation where space is really limited, but even there, taller accommodations can be effectively used to shave off housing costs. The case in Canberra, however, has very little to do with actual growth in incomes, but with government policy. One that would include the Reserve Bank and other mechanisms that is producing a housing bubble.

kennardly 10:50 am 01 Jun 07

you are right, this shouldn’t be news to anyone.

a little off the point but: In this election, as they should have done last time, labor needs to hammer the point that sure interest rates are lower than when labor was last in power – but people are having to pay more of their incomes into their mortgages. So how are mortgagees and prospective home buyers better off now then they were when labor was in power and interest rates were 18%??

VYBerlinaV8 now_with 11:11 am 31 May 07

I’m not sure why this is news, or why people think that somehow in 15 years something magical will happen that mean all the people who can’t afford to buy houses suddenly can. Housing in major western economies has been rising in cost for at least the last century. Given the cost of housing in places like UK, Europe, and the US, there is no reason to expect housing costs won’t continue to rise for the forseeable future. Canberra used to be cheap for houses 6 or 7 years ago because the previous boom had finished almost 10 years previously. Housing was, effectively, underpriced. In reality, we are probably only 2-3 years away from the next house price boom. Given the level of city development, the increase in the size and $$ of fed govt driving demand for well paid staff, and the fact that rents are beginning to stablise at more appropriate (from an investment perspective) levels, there isn’t much longer to run before the next big price hikes.

Bear in mind that in many other western countries, only the wealthiest quarter or third of the population can afford to buy a home. My recommendation, for what it’s worth, is to get into the property market as soon as you can, any way you can, because it’s only going to be uphill from here.

jase! 5:23 pm 30 May 07

thumper, hobart was traditionally a lot cheaper than the rest of the country, with salaries to match, then a lot of investment money came in and drove all the prices up

Thumper 3:35 pm 30 May 07

Perth has had the resources boom. Hence the massive hike in prices.

Hobart? Well, I’m not sure about there, but you are correct. It used to be dirt cheap to buy a mansion on the Derwent. Not so now.

Sydney, Brisbane, Melbourne- Always been expensive so no surprises there.

Adelaide, always reasonably expensive.

Canberra, like Hobart, used to be dirt cheap. Not so now.

FC 2:47 pm 30 May 07

Nemo –
I agree.
I think a lot of it is hype.
Its not that unnaffordable.
If you really want to buy and you can’t afford it alone, go joint tenants with someone…or work more to earn more money.
If you want to spend all your money on other things like TV’s, holidays etc, that’s a choice. But then the same people shouldn’t whinge about not having enough money for a house.

Woody Mann-Caruso 2:40 pm 30 May 07

Housing affordability is at an all-time low across the country, not just the ACT. A few years ago Perth, Brisbane and Hobart were cheaper places to buy a house, and now they’re not. I don’t see why Stanhope should have to explain why national market forces are the way they are.

Nemo 2:40 pm 30 May 07

Banks tend to lend a greater % of the purchase price these days. In many cases you can borrow 95% of the purchase price, in addition they have loans which you can borrow against your parent’s house(presuming they have one). You may not need a deposit at all.

There are also many cheaper options, such as units in outer suburbs.

It’s not that difficult to get into the market if you really want to.

GnT 2:07 pm 30 May 07

With rent also at an all time high, non-home owners are really in a pickle.

Related Articles

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2017 Riot ACT Holdings Pty Ltd. All rights reserved.
www.the-riotact.com | www.b2bmagazine.com.au | www.thisiscanberra.com

Search across the site