Torrens is a well-established suburb sitting approximately 10km south-west of the CBD. With its close proximity to nearby town centre Woden, and being only 3km from Canberra hospital, it offers many of the basic fundamentals investors search for.
Rental yields may be a little flat, but the suburb offers a good selection of properties that are ripe for renovation.
Badenoch Real Estate principal Simon Badenoch explains that Torrens’ combination of high land values and properties that could do with a facelift offers some excellent add value opportunities.
“The margin between vacant land and land with an existing dwelling is very minimal. The average land price is around $400,000 and with properties selling between $470,000 and $480,000 there is scope for investors looking to increase their capital gains by renovating,” he says.
And Badenoch sees benefits for Canberra-based investors who may want to live in the property for the short term before renting it out. First homebuyers who want to make the most of their buyer’s grant before renting the property out, for example.
“Structurally, the properties are well built, so investors have the option of living in it for a couple of years before renovating and putting it on the rental market,” he says.
Amenity-wise, nearby Woden City offers a major shopping centre, and the town is currently undergoing a large transformation – including the development of a number of medium-density residential units.
SQM Research figures show residential vacancy rates rarely exceeded 1% in the past four years, and data from realestate.com.au suggests a healthy demand over supply, with approximately three people viewing every listed home.