Canberra's north and south offer property value for $500,000: HTW

The first half of the 2016 calendar year in the Canberra residential property market has seen linear growth and a further shift in demand towards detached established dwellings, says the July residential market report from valuation firm Herron Todd White in its discussion on properties around or below $500,000.

While modern and centrally located unit stock is available in abundance in the sub-$500,000 bracket, numerous changes in lending criteria for investors, poor rental performance and product oversaturation in particular segments are the main drivers leading this shift. When coupled with less than desirable capital growth, the market has been responding accordingly. 

“The lazy half million can still achieve reasonably good value in both the north and south of Canberra,” says the report. 

Two suburbs which highlight this are Ngunnawal (Gungahlin region) and Wanniassa (Tuggeranong region). 

“$500,000 will secure a 1990s, four-bedroom, two-bathroom, two-garage home on a 600 square metre block in Ngunnawal and a similar home in Wanniassa albeit 18 years older and on a larger parcel of land.

“With the median house price in the ACT hovering around the $560,000 mark, the lazy half million doesn’t stretch as far as it used to when chasing solid capital growth. Gone are the days of being able to crack the inner south or even the Woden Valley region, both desired for solid capital performance.” 

This is evidenced by several recent sales of vacant land (remunerated loose fill asbestos blocks) for well over $500,000. 

With the aforementioned regions being prohibitively expensive, focus has transferred to the Weston region (specifically suburbs geographically close to Woden, Waramanga and Weston) with strong growth observed in the past 18 months. The market has realised this potential and sales of three-bedroom, one-bathroom ex-government stock has increased, with new owners electing to renovate and play the waiting game.

As an example, Property Observer found a three-bedroom house at 4/35 Lansell Circuit, Wanniassa, ACT 2903 which recently sold for $410,000.