A shortage of stock, falling interest rates and a high level of demand for family homes made 2016 one of the Canberra property market’s strongest years on record. Industry experts believe the momentum will continue in 2017. Domain chief economist Andrew Wilson expects more solid growth for the year ahead. “The Canberra market heads into this year with a full head of steam,” Dr Wilson says. “We’re not talking a real boom in prices here. It’s been a recovery from a quiet period and now it’s a consolidation of that recovery going forward.” LJ Hooker Dickson principal Stephen Bunday says he expects 2017 will be “business as usual”. “Money remains cheap and accessible and the supply remains low,” Bunday says. “I can’t see why that would suddenly change – the demand is there.” More good news for sellers (but not such good news for local buyers) is that interstate buyers are beginning to take note of Canberra’s high rental returns and affordability compared to Sydney and Melbourne.
Peter Blackshaw Manuka agent Mario Sanfrancesco says he is fielding more inquiries from buyers hoping to invest in the nation’s capital. “It’s absolutely beginning to occur now,” Sanfrancesco says. “Purchasers are finding our properties are providing a wonderful buying opportunity compared to what’s happening in their cities.” Sanfrancesco says properties that are low maintenance, close to amenity and offer a reasonable return are particularly attractive to investors. Luton Properties director Richard Luton says interstate owner-occupiers are also on the rise. He says many Sydney and Melbourne buyers are hoping to call the ACT home and are drawn to Canberra’s comparably low house prices and the quality of its infrastructure. Million-dollar sales occurred in all of the ACT’s districts last year, which bodes well for further price growth this year. Luton says he expects inner suburbs such as Downer and Watson in the north and Narrabundah in the south will experience a growth spurt that has already happened in more central suburbs.
He says Aranda, Cook, Macquarie and Crace – suburbs within easy reach of the city, but are not necessarily inner suburbs – are also experiencing growth. Sanfrancesco believes more properties will be sold under the hammer – a continuation on last year’s uptake of auction sales. “We’ve seen an increased percentage of properties sold at auction and buyer feedback is that it’s the most transparent method of sale,” Mr Sanfrancesco says. Dr Wilson says while the market is set to strengthen this year, usual factors such as interest rates and the outcome of the 2017-18 federal budget will be key drivers. “A lot will depend on where interest rates fall this year and I think we’re going to see higher effective rates this year. Even though we’ve got a chance of lower official rates, I’m not sure the banks are going to pass them on,” Dr Wilson says. “If rates are stable officially this year, I think buyers are going to push up rates and that will act to moderate price growth and affordability.
Dr Wilson says there’s no doubt that a better sentiment for last year’s budget contributed to the market’s momentum. The 2017-18 budget, to be handed down in May, will help determine how consumer confidence continues. Arthur and Judy Ingle, above, are putting their Farrer home on the market with “mixed feelings”. They’re moving to Goodwyn Retirement Village in Monash – a “friendly and supportive place”, according to 90-year-old Arthur. However, they will miss the four-bedroom house that has been home to so many memories. Pridham Street has been their home since 1999 and Arthur invited 80 people to the house for his 80th birthday party. The open-plan family room, large kitchen and expansive outdoor terrace is ideal for grand-scale entertaining. Judy, 85, says the house is well-equipped and modern, but it’s just too big for the retired couple. With plenty of space, storage and a big backyard, the couple say the property would make a wonderful family home.
Number 26 Pridham Street, Farrer, will be auctioned at noon on February 4. Phone Luton Properties Woden agent Anthony McCormack on 0425 283 588. 72 Dawes Street, Kingston About $2 million 4 bedrooms, 2 bathrooms, 3 parking spaces Auction at noon, on Saturday, February 4, onsite Inspect on Saturday, from 12.15pm-1pm Peter Blackshaw Manuka, Mario Sanfrancesco 0412 488 027 While low-maintenance living within a stone’s throw of Canberra’s best restaurants is usually reserved for apartments, this substantial townhouse on Dawes Street combines generous proportions with the convenience of a central location. Peter Blackshaw Manuka agent Mario Sanfrancesco says properties of this scale at Kingston Foreshore are tightly held and highly sought after. “This property offers a wonderful lifestyle,” Mr Sanfrancesco says. “It’s high quality and generous in its living spaces, however it allows the owner to reduce the level of maintenance required for living in a substantial home.”
A series of courtyards and outdoor spaces bring light and greenery into the home. The open-plan kitchen, living and dining area forms the hub of the home and flows through bi-fold doors onto an outdoor area. When the doors are opened, the living area is effectively doubled and electronically controlled overhead louvres ensure the outdoor space is weatherproof. The kitchen is beautifully appointed and features a marble splashback, built-in cappuccino machine and a butler’s pantry. The luxurious main bedroom is also on the ground floor and includes walk-in wardrobes and an en suite with a freestanding bath. Other features include a three-car garage, three upstairs bedrooms with built-in wardrobes, an office-sized study on the ground floor, a wine cellar and a gas open fireplace.Your browser is out of date This website will not look or function as originally intended in your current browser We recommend upgrading to the latest version ofTry our selector tools.