5 Best Reasons – Why Canberra Is Better Investment Hub
Looking for an environment-friendly town where the congestion is not clogging the road?
Canberra, Australia, is the most investable real estate market where rental properties bring about stable and reliable returns.
Various reasons contribute toward Canberra being investors and buyers favorite alternative for real estate, namely:-
1) Near to the southwest of Sydney (less than 300km).
2) In Sydney, as an investor, you would have to roll out over $1 million to purchase a home, while you can get a house in Canberra only for $740,000.
The rental prices in Canberra are slightly below Sydney, where the sales price are far beneath Sydney, which means a better return on investment.
While the renting and housing price remains stable in Canberra, rental prices in Sydney have fallen to the level not seen since 2016.
The rate of return for dwelling in Canberra has been recorded as +5.8%. The median dwelling value of Canberra’s property is around $592,000.
3) Labor-intensive market with good population growth being the major growth drivers for real estate realm. The unemployment rate in Canberra is 3.9% which is lower than the NSW average.
Even the population growth has been strong here over the past six years at 1.7%, the second-highest growth rate across the country as per the latest ABS data.
4) Strong capital growth through higher demand for houses and units.
Both houses and units are witnessing higher demand in Canberra, resulting in the solid capital growth of 23% in the last five years and 10% in the previous 12 months.
The capital growth of units in Canberra has continued to fetch a healthy hike of 4% in the last five years and 5% in the past 12 months.
5) The economic growth of Canberra is the fastest growing in Australia at 4.25%. Additionally, the rental vacancy rate is lowest at 0.8%. The average apartment gross rental yield here is 5.6%.
Why invest in Canberra property?
Canberra, an excellent option for property investors, solidifies investors’ returns with more minor market fluctuations.
In November 2020, the Reserve Bank of Australia announced the unchanged official interest rates at the record low of 0.75%. Also, it has revitalized the property market as securing a mortgage is cheaper than before.
Canberra has been witnessing a property boom for the past decade as the rental value is increasing consistently. This leads Canberra as outstripping Australia’s some of the most mainstream property investment Hubs.
It is a strong contender for investment, both short-term and long-term.