John McGrath’s three Canberra hotspots under the microscope

John McGrath’s three Canberra hotspots under the microscope

Jennifer DukeDecember 7, 2020

The ACT is a market that not every investor looks to tackle, with most heading to neighbouring New South Wales for strong performance.

However, while Sydney did secure 10 places on industry expert John McGrath’s hotspot list, Canberra took out three choices.

Property Observer decided to take a closer look at his three selections, the prominent statistics and the differences between the areas.

AINSLIE

McGrath calls north-east Canberra’s Ainslie a “strong reliable performer”. The large and tightly-held area caught his eye for a significant segment of the suburb that is elevated and able to capture city views, as well as that it backs onto bush reserve.

The reserve in question is Mt Majura Nature Reserve, which sits to the east of the suburb. It is further bound by Limestone Avenue and Majura Avenue to the west.

“It is walking distance to the city with wide leafy streets and vibrant village shops and cafes. Also has easy access to the employment hubs of Russell & Barton,” he said.

Less than a 10 minute drive to the centre of Canberra, it appears that it could take around 40 minutes to walk.

The area includes a number of leafy reserves and open space areas, including Corroborree Park, Majura Oval and Ainslie Football Park, as well as trails through the reserve.

It has bus routes through the main local roads of Campbell Street, Ebden Street, Office Crescent and Cowper Street. The suburb includes an IGA supermarket at its centre, a laundrette, pharmacy, liquor store, and a few eateries. There is a local football and social club.

The 2011 Census put the area as containing 5,100 people, with a median age of 40. Of the dwellings, 82.8% are separate houses, with the majority including three bedrooms (49.2%), closely followed by three bedrooms and two bedrooms at 22.3% and 20.7% respectively. In total, 38.3% were recorded as renters.

Statistics to know

Vacancy rate: 2.3%

Source: SQM Research

Houses

Median price: $695,000
Median advertised weekly rent: $510
Gross rental yield: 3.82%
12 month growth: 3.42%

Units

Median price: $717,000
Median advertised weekly rent: $550
Gross rental yield: 3.99%
12 month growth: -5.35%

Source: RP Data

Other neighbouring suburbs: Braddon, Dickson, Hackett, Campbell

See over page for McGrath's other ACT picks - Turner, Crace and Franklin

TURNER

Turner is seen by McGrath as a “very solid performer” and one of the closest established suburbs to the CBD. He notes that a lot of new boutique developments of apartments and townhouses are going in, and that it has “low long-term vacancy rates & reliable capital growth”.

It is also close to the Australian National University (ANU), which he says makes it popular with students, academics and CBD executives.

A five minute drive north of the CBD, and less than 30 minutes to walk, the suburb is bound by Northbourne Avenue to the east, Barry Drive to the south and David Street to the north. It has a substantial amount of green parkland throughout, particularly through the central corridor, including Masson Street Oval and Haig Park West. Much of this surrounds Sullivans Creek, which runs vertically through the centre of the suburb.

Bus routes are regular along Boldrewood Street, McCaughey Street and Northbourne Avenue.

The area is home to Treehouse in the Park Early Learning Centre and Turner School, with adjacent Turner School Playing Field. ANU is just outside the suburb’s boundaries, to the south. Those looking for options to buy units, should note that higher density dwellings are more common in the northern part of the suburb.

The 2011 Census recorded 3,595 people in residence in the suburb, with a median age of 30. In total, 72% of the dwellings were recorded as flats, units or apartments, with another 20.2% recorded as separate houses. The most common dwelling were two bedrooms, at 42.6%, followed by one bedroom and three bedrooms at 27.4% and 20.4% respectively. In the area, 62.8% are rented.

Statistics to know

Vacancy rate: 2%

Source: SQM Research

Houses

Median price: $1,185,000
Median advertised weekly rent: $520
Gross rental yield: 2.28%
12 month growth: 29.37%

Units

Median price: $460,000
Median advertised weekly rent: $455
Gross rental yield: 5.14%
12 month growth: -1.07%

Source: RP Data

Other neighbouring suburbs: O’Connor, Braddon, Acton

See over page for John McGrath's third pick - Crace and Franklin

CRACE, FRANKLIN

These two suburbs are neighbours, and thus make the list as one entry. McGrath notes that they’re relatively new and popular with families due to their modern housing, landscaped parks, sporting facilities, cafes and schools.

“Crace is Australia’s fastest growing housing market according to the Housing Industry Association, based on the value of new home approvals and population growth,” he said.

Crace and Franklin are located within a 40 minute drive of each other, the lengthy time to drive to a neighbouring suburb due to the presence of Gungaderra Grasslands Nature Reserve between the two. Both are located within a 15 minute drive north of the CBD, some 10 kilometres away, and both are within the Gungahlin District.

The leafy Crace includes a number of parks, a Hilltop Reserve and even a community garden. It is bound by the Barton Highway and Gundaroo Drive. It saw the roads and display homes finished in 2009, so has some time until it is established. It was developed over the past five years as a joint venture between project manager CIC Australia, and Land Development Agency, as well as Defence Housing Australia, Community Housing Canberra and Tatebrook Pty Ltd.

The sales and information centre closed permanently from the end of January this year, and the area won the 2014 ACT Property Council of the Year award for Project Development of the Year, as well as Best Masterplanned Community in the Innovation and Excellence Awards.

The area includes Abena North apartments (featuring 20 units), on the main boulevard, as well as terraces, including 17 townhouses in the Greenleigh Park development, and freestanding homes across the estate. About 1,600 homes were estimated on completion, with sales strong in the latter part of 2013. A number of other apartment projects are also located in Crace.

The bus route is not as comprehensive in this area, with services at Langtree Crescent and Abena Avenue.

Of course, the 2011 Census data will be a little less up to date than that for other suburbs. As of 2011, it notes that 563 people were in residence, with a median age of 27. There were 327 dwellings, with 45.6% of them being semi-detached, row or terrace houses, most likely with three bedrooms (35.2%) or two bedrooms (32.2%). At that point in time, 36.3% were rented.

Franklin, which is adjacent to the Mulanggari Grasslands Nature Reserve, also includes the Guburb Dhaura Heritage Park. It is primarily bound by Flemington Road, Well Station Drive and Gungahlin Drive.

The main bus route covers Hoskins Street, Oodgeroo Avenue and Flemington Road. There is an early childhood home in the area.

The 2011 Census data records a total of 3,804 people in the suburb, with a median age of 28. Of the dwellings, 82.3% were separate houses, of which 57.2% had four or more bedrooms. A further 30% had three bedrooms. Tenants in the area amount to 29.1% of the population.

Statistics to know (Crace)
(Vacancy rate and unit data not available)

Houses