The figures add up to an average performance in Canberra, but future growth looks likely.
While the ACT has not returned the most spectacular results for the three months to October, growth of 3.48% is not to be sniffed at. Rents remain high, with healthy returns of 4.67% placing it second only to Darwin and the country NT.
Andrew Donnelly, CEO – Braxton Chase, says that Australia’s capital has been a solid performer over recent years, and was arguably the country’s best market for residential property over 2007.
He feels that strong migration and a stream of new and well-paid public service jobs have served to strengthen underlying demand, while a major shift of military personnel and their families to the region added further market stimuli.
This has resulted in strong demand for residential property and a construction industry trying to keep pace. “Even a cursory glance at Canberra’s expanding CBD reveals that big investment dollars and new jobs are flowing into the city and throughout many suburbs of the ACT,” says Donnelly. He adds that migration to Canberra is likely to slow in 2008 however, gradually returning the market to a state of equilibrium and easing the rate of growth.
Standout suburb included Conder, which recorded capital growth of 6.05% in the three months to October and 14.09% year on year.
