In Canstar’s latest Rising Stars Australian Property Market Report, Canberra has fallen from fifth to ninth best region to invest in the housing market.
Maintaining its status as the ‘Goldilocks of Australian real estate’, the Canberra market remains moderate, indicative of the times. According to the report, during the 2020-2021 national boom, the national capital delivered substantial price growth but remained in the middle of the pack. With some property prices skyrocketing and others declining, Canberra is back to producing undramatic results.
Thanks to being a purpose-built capital city, the report suspects Canberra was destined to be a steady and almost boring real estate market. It has the highest average incomes in Australia, typically the lowest unemployment, and land continuously in short supply from the ACT Government’s “carefully rationed” releases – a combination destined to be ‘boring’, said Canstar.
The cheapest suburb in Canberra has a median house price of more than $700,000 – if you’re searching for an affordable home, Canberra will be difficult – but it’s a good place to put your money thanks to its safety, solidity, and steadiness.
One market that, while continuing to rise, provides a degree of affordability which is scarce in Canberra is centrally located apartments. This trend correlates to the national tendency to target apartments in expensive cities to achieve good locations at attainable prices.
If you’re planning to buy in 2023, here are Canstar’s top five Canberra suburbs to invest in:
- Chisholm
Chisholm in Tuggeranong has recorded consistent sales every quarter for the past four years. The median house price rose by 23.4 per cent in 12 months while rents have risen a minimum of 10 per cent. Described as “typical of the steadiness which defines the Canberra market”, Chisholm has an array of schools, parks, and the Chisholm Group Centre with shopping and community services.
2. Dickson
Units in the Inner North suburb of Dickson have seen increasing demand considering their much lower price point; the median house price in Dickson is $1,130,000 compared to a median unit price of $525,000. This inner suburb follows trends in the nation’s most expensive cities, and hosts a plethora of amenities, particularly around the Dickson Centre with shops, an ambulance station, restaurants, offices, and two secondary colleges.
3. Franklin
Real estate in the Gungahlin suburb of Franklin has seen soaring growth from the development of the light rail and is often the most prominent market in Canberra. Mostly a residential area with mixed-use development along Flemington Road, Franklin is serviced by three tram stations. The median house price is now close to $1 million.
4. Ngunnawal
Ngunnawal is relatively affordable by Canberra’s standards with a median house price of $770,000, compared to the ACT’s overall median of $1 million. Located 4km from the Gungahlin Town Centre, Ngunnawal is popular with buyers; 250 dwellings have sold in the past year and the tight rental market has seen rents rise 10 per cent.
5. O’Connor
Overall, O’Connor can be described as “steady” with two trends dominating the suburb in the past year: consistency, and a rising demand for well-located units. The Inner North suburb has recorded significantly steady sales every quarter for the past six years, with a particular demand for units. The median price for units sits at $570,000 (which represents a 32.6 per cent increase in 12 months), and the median house price is $1,655,000.
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