Unit construction tied to pre-commitment sales in Canberra suburbs: Herron Todd White

A large number of residential apartments along Canberra's Flemington Road corridor through suburbs Franklin and Harrison could be delayed until pre-commitment sales increase and demand strengthens, according to Herron Todd White.

Herron Todd White's September Month in Review found a large number of medium density apartment developments either being built or nearing completion in Belconnen, Central Canberra, Gungahlin and Woden with high quality inclusions and in some cases smaller floor plates.

"The entry level price point for a modern 1-bedroom unit in the Gungahlin area is around $260,000, while high value, centrally located penthouse style units can achieve $2 million plus price levels," it said.

"The average number of multi unit sales in Canberra equates to 3,000 to 3,500 on average per annum. Of this amount approximately 50% are new units. Accordingly, some 1,750 new multi unit dwellings are required to meet annual demand in this sector of the market."