Canberra has scored number 12 out of 14 in a ranking of Australian housing affordability by region, proving the national capital remains one of the country’s most expensive cities in which to buy property.
Canstar’s most recent Australian First Home Buyer Report revealed that Canberra’s unique population made for an interesting set of results.
At $730,375, Canberra’s lower-percentile sales price is the second highest of the 14 regions in the Report, but Canberra residents earn a higher income than residents in other cities. As a result, Canberra is ranked twelfth overall when it comes to affordability for first home buyers.
Mortgage stress is evident throughout the ACT with most repayments significantly higher than the recommended 30 per cent of income. Stamp duty and government charges are $571 for a single income household, but jump to $21,923 for dual incomes, for a property valued at $730,375.
It would take a single person nearly 14 years to save a 20 per cent deposit and stamp duty or 6 years and 5 months to save a 10 per cent deposit. For a dual-income couple, saving for a 10 per cent deposit and stamp duty would take 4 years, with 22.2 per cent of the couple’s after-tax income going towards loan repayments.
The top suburbs in Canberra according to the report, named the ‘Bright Starters’, all have a median property price sitting below the lower quartile price for the region.
Canberra’s top statistics
Lower quartile sales price (25th percentile)
$730,375
Time to save 10 per cent deposit and stamp duty
Single income: six years, five months
Dual income: four years
Time to save 20 per cent deposit and stamp duty
Single income: 13 years, 11 months
Dual income: seven years, three months
Repayments as a percentage of income (borrowing 90 per cent plus LMI)
Single income: 44.5 per cent
Dual income: 22.2 per cent
Repayments as a percentage of income (borrowing 80 per cent)
Single income: 37.4 per cent
Dual income: 18.7 per cent
Canberra’s top 5 suburbs to purchase property
Charnwood
One of the most affordable suburbs in the expensive city of Canberra, Charnwood comes out as the top area to purchase a home in this year. House prices are in the high $500,000s and low $600,000s, it has ultra-low vacancies, and is in a great location in North Canberra. Charnwood is surrounded by multiple schools, central to a shopping centre, and has superb access to beautiful parks and reserves.
Dickson (Units)
The median house price in the Inner North suburb of Dickson is close to $1 million, but an average unit is just half the price. Apartments in Dickson are an affordable way to live close to great local facilities and amenities, and still have access to all the employment prospects that central Canberra has to offer. Along with being so close to the city, Dickson has quick access to Canberra Nature Park, green spaces, and great schools. Rentals in the suburb are notoriously expensive, and the vacancy rate is well below one per cent.
Gungahlin (Units)
Gungahlin presents a unique opportunity for Canberra home buyers – you can purchase an apartment within the $300,000s and $400,000s and be surrounded by major amenities, along with job opportunities. The suburb in the northern hub of the ACT is the starting point of the light rail service, and also has quality education and retail facilities. One of Gungahlin’s best features is the surrounding Canberra Nature Park, along with the Gungahlin Lakes Golf Club.
Isabella Plains
Tuggeranong’s buyer demand has been soaring in recent times, and there’s been a notable uplift in prices in Isabella Plains; vacancy rates are near zero and rental prices are rising. The suburb has its own amenities, but it’s also just a short drive away from Tuggeranong Town Centre, which is the hub of the region. With an abundance of parks and green corridors to boot, it’s no wonder Isabella Plains is one of Canberra’s top five up-and-coming sought-after suburbs.
Ngunnawal
Ngunnawal is particularly well known for its green spaces and leisure facilities, including the beautiful Yerrabi Pond and surrounding amenities. Neighbouring Gungahlin, a key area in northern Canberra, Ngunnawal is near retail, commercial and education facilities. After major price increases in recent times, houses in the suburb are now in the $600,000s and units close behind in the $500,000s. Plus, it’s just a short light rail ride to Canberra City.
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