Canberra housing market is climbing but how bright is the future?
Canberra real estate market is booming at an all-time high. The Canberra property saw the high last in April 2019. The reason behind this extraordinary high is stable employment through the pandemic, lower interest rates and a shortage in Canberra real estate for the sale of properties. But in July 2021, Canberra saw the highest clearance rate of any of the capital cities.
The Suburbs of Canberra
The population in the north is increasing massively. The properties in the suburbs are getting the highest biddings as nearly three hundred thousand dollars have skyrocketed the prices.
Prices of properties in Moncrief have shot up by more than 32 per cent. The more established suburbs in the south are booming as well. The median sale price in Mawson has shot up by more than two hundred thousand dollars.
A house in Oxley (the smallest suburb of Canberra) could cost you around eight hundred thousand. At the same time, the median sale price in banks in the far south has risen by more than twenty-five per cent.
Condition of Existing Canberra Property Market
While the median home price in Canberra continues to rise, unit prices are falling. In fact, in September alone, median unit prices dropped by 11.7 per cent. This considerable reduction might be due to a lower sample number of sales skewing the data. Still, it appears to be a typical tendency.
The median unit price in Canberra decreased 7.7% in the year that ended in September. A high volume of low-value unit sales and a substantial increase in supply contributed to the decline. There were 1,008 housing starts in the June quarter of 2017, the bulk of which were flats and units. It marks a significant increase of 28.7% over the previous quarter, indicating that home starts in the region are constantly increasing.
Forecasting Real Estate in Canberra
As one can analyse, the Canberra property market is a hotspot for property investment in 2021. But the question that arises is the future also that bright? Will investors get the return on investment in the coming years? As Canberra real estate is booming high, and the experts say it is overpriced.
The Australian Prudential Regulation Authority (APRA) is expected to revise its policies in late 2021; after that property market might hit the lower edge as it did in 2017.
Real estate investments always come with risk, but it is the responsibility of investors to forecast the market growth and its reactions. It is their job to invest in a minimal risk position to enhance the return on investment.
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