Buyers in the box seat in prestige Canberra market: CBRE
The ACT housing market is stable but buyers remain in the box seat for property priced above $500,000, according to CBRE’s latest residential research.
Its stable employment outlook was a critical factor.
“This is a significant advantage that Canberra holds over its interstate rivals,” CBRE research analyst Sam Reilly says.
But reduced enquiry and the current availability of stock is limiting substantial increases in capital values.
Its entry-level house and unit market up to about $500,000 have been performing well in areas such as the inner north, inner south, Woden and Weston Creek districts, the report says.
“But there was an element of concern over future interest rate rises and what effect this might have given that supply levels in the ACT were currently exceeding demand, albeit slightly,” Reilly notes.
Canberra’s middle market from $500,000 to $1 million has been a buyer’s market since the end of 2010, with marketing periods for residential property now ranging between two and six months – but expected to shorten in the busier spring trading period.
“It will remain critical that vendors adapt to the generally subdued market conditions in order to make a sale,” says CBRE associate director of valuation and advisory services Marcus Hon, adding that realistic pricing remains crucial to achieving a sale in this price bracket.
Subdued conditions are also evident in the prestige market, for units and houses priced above $1 million.
“Levels of supply are exceeding demand and this has resulted in marketing periods extending, as vendors appear generally unwilling to meet the market,” Hon says.
Subdued conditions are also evident in the prestige market, for units and houses priced above $1 million with levels of supply exceeding demand which has resulted in marketing periods extending, as vendors appear generally unwilling to meet the market,” Hon notes.
Canberra’s investment market had reasonable levels of demand and good sales results for properties priced up to $600,000.
However, Hon warns that the longer-term outlook for investment stock is less positive, given the level of supply expected to enter the market in 2012-2013 in areas such as Woden, Belconnen and Bruce.
