16 December 2022

High demand for Canberra's lifestyle precincts as unit sales buck the trend

| Katrina Condie
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View from building

NewActon apartments are ultra-modern with mountain views. Photo: Photox – Canberra Photography Services.

While Canberra’s housing market continues its slow decline, the unit market has experienced a run of resilience, with capital city unit values across the country down 0.6 per cent in November, while house values declined at twice the pace with a 1.2 per cent drop.

According to CoreLogic’s research director, Tim Lawless, the trend has been seen throughout the downturn to-date, with capital city unit values down 4.7 per cent from the recent peak, while house values are down 8.4 per cent.

“Every capital city apart from Hobart is recording a more resilient outcome for unit values relative to houses,” he said.

“This trend can at least partially be attributed to the more moderate gains recorded during the upswing, but probably also reflects the unit sector’s more affordable price point at a time when borrowing capacity has reduced.

The latest CoreLogic Home Value Index shows Canberra’s overall median value at $869,235, with houses under the million-dollar mark at $987,450, and units and townhouses at $600,628.

READ MORE Market madness is over as Canberra home prices continue to come back to reality

Crowthers Property Professionals managing director Charles Crowther says, while the ACT property market has experienced a slowdown, the demand for apartments in lifestyle precincts remains high as Canberrans seek convenient, low-maintenance living with all the bells and whistles thrown in.

Boutique lifestyle precincts are being developed across the city offering luxe homes as well as a plethora of extras such as indoor pools, barbecue areas and playgrounds, gyms and even dog parks.

Mr Crowther says homes in apartment precincts are popular because of the easy lifestyle and affordability.

“The traditional way was to build a stack of units on a block. People lived in a white box in the sky and had to find their own fun,” he said.

“Now there’s a lot more infrastructure and really good integration between the homes and the communal areas, as well as cafes, restaurants and gyms that are often on-site.

“The NewActon precinct, for example, has a hotel underneath and the lobby area, bar and restaurant are popular meeting places for residents.

“Estate at Forrest has a wine cellar and function room where residents can meet up or hold a wine tasting.”

Mr Crowther says the social benefits are huge. Often, executive committees organise events for residents, such as the 20-metre-high Christmas tree that has recently been erected at Kingsborough.

“All the neighbours got together and decorated it with the kids, and Santa came. It’s great,” he added.

Demand for lifestyle precincts has been consistent from pre-COVID-19 times until now, with many ‘DINKS’ – double income, no kids – finding the apartments ideal for working from home, while also having easy access to recreational facilities such as gyms, pools and coffee shops.

“Young couples love them because everything is on their doorstep, either within the precinct, or very close by,” Mr Crowther said.

Retirees and downsizers are also lining up to purchase apartments because they can lock up and leave for months to travel, with no worries about maintenance or security.

“We’re also seeing a lot of people selling their big suburban homes, buying a weekender down the coast and also buying an apartment in Canberra,” Mr Crowther said.

He says precinct designers are thinking more about what people want when they retire, and that is larger homes, green space and recreational facilities.

The precincts are being constructed in prime locations close to town centres and public transport, and most boast views of Canberra’s mountains, lakes and parkland.

Kingsborough is just a five-minute walk from the buzzing Kingston Foreshore, while Campbell 5 is nestled among Mount Ainslie, the Australian War Memorial and Lake Burley Griffin with the CBD’s restaurants, shops and theatre just a stone’s throw away.

READ ALSO Lifestyle precincts buzzing as Canberrans embrace the ‘live, work, play’ mantra

Mr Crowther says buying off the plan is usually a more affordable option for first home buyers and, with around a two-year wait until settlement, gives people time to save money. It also gives downsizers time to sell their existing home.

With more Canberrans realising the benefits of residing in a lifestyle precinct, and many new developments on the drawing board, Mr Crowther doesn’t expect demand to slow down anytime soon.

To find out more about completed lifestyle apartments currently on the market and homes selling off the plan, contact Charles at Crowthers Property Professionals on 0408 868 511.

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Most people would much prefer a house, The fact is they can not afford one

Capital Retro12:25 pm 19 Dec 22

“Retirees and downsizers are also lining up to purchase apartments because they can lock up and leave for months to travel, with no worries about maintenance or security.”

That’s just total rubbish. A few very wealthy and healthy ones maybe but the aggregate of that demographic need a ground floor, no steps/elevators and somewhere to park a caravan/trailer as well as a small garden.

“That’s just total rubbish. A few very wealthy and healthy ones maybe but the aggregate of that demographic need a ground floor, no steps/elevators and somewhere to park a caravan/trailer as well as a small garden.”

Clearly you’ve never lived in an apartment. Most apartments have lift access with no stairs to climb. You literally walk-in and walk-out to your front door.

Plenty of gardening can be done in a courtyard/sizable balcony apartments.

Trailers can be parked in a secure underground parking if you have more than one parking space, only point you may have is parking for a caravan but that’s also a very small number of retirees who has/needs one and apartment living isn’t for them.

What a total rubbish indeed.

Capital Retro5:18 pm 19 Dec 22

Retirees that I know who have mobility problems have chosen the home unit solution and regretted it. There have been a lot of lift failures in recently built Canberra home units. People with mobility problems cannot even get their meals on wheels deliveries when this happens and you are dreaming if you think parking arrangements can be manipulated to accommodate a trailer.

You are correct in saying I have never lived in a (Canberra) apartment. I would prefer to live in a tent in the bush.

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