Canberra

New protections will come for off the plan buyers in the ACT after new laws passed in the Legislative Assembly.

The Civil Law (Sale of Residential Property) Amendment Bill 2021 was legislated after complaints about off-the-plan contracts being unfairly rescinded.

Under the new legislation, developers will be able to rescind a contract only if the buyer consents or if there has been an order of the ACT Supreme Court.

The developer must give 28 days written notice to the buyer and must disclose why the contract should be revoked. 

If the buyer does not agree, the developer may seek an order from the Supreme Court sanctioning the recission.

The court will take into account the impact that the revoked contract has on both the buyer and seller. 

“The recent trend of developers rescinding contracts has led to great personal distress for some buyers, as well as undermining confidence in the off-the-plan property purchase market,” said ACT Attorney-General Shane Rattenbury.

He noted there had been "inappropriate opportunistic conduct” which had prompted protections for homebuyers from sunset and development delay clauses "in illegitimate and unjustifiable circumstances."

“The housing market is already stressful for buyers, and it is often first-home buyers who are looking at off-the-plan purchases. It was important to act swiftly to address these concerns and protect consumers from rescissions occurring in bad faith.”

“Developers will still be able to include sunset and development delay clauses in off-the-plan contracts, but they will only be able to use these clauses to rescind a contract if the buyer consents or if they’re permitted by an order of the ACT Supreme Court,” he said.

There are similar rules in other states.

jchancellor-FAypfDUnLy

Canberra off the plan buyers get contract rescission protections

<p>Geocon, once again partnering&nbsp;with the renowned team at architecture giant Fender Katsalidis, is offering the final apartments in their Republic precinct in Belconnen.</p>

<p>It follows closely on the heels of three already successful residential developments in the masterplan, Republic, High Society and Dusk.</p>

<p>Already one of the most thriving regions in Canberra, Belconnen&nbsp;is one&nbsp;of the original eighteen districts of the Australian Capital Territory.</p>

<p>&ldquo;The Republic master plan is built upon an unashamedly ambitious desire to reshape the very fabric of residential Canberra by challenging conventions and expectations,&quot; Geocon advise.</p>

<p>[smartcode_project:default project_id=29898 project_image_fid=170970]</p>

<p>&quot;The result is a rich new definition of contemporary living that celebrates community and lifestyle, and overlays it with unrivalled value for money.</p>

<p>&quot;Republic will boast Canberra&rsquo;s most breathtaking assembly of private and public spaces, punctuated by five striking residential towers overlooking Lake Ginninderra.&rdquo;</p>

<p>Located around&nbsp;seven&nbsp;kilometres&nbsp;to the north-west of the CBD, Nightfall&nbsp;is&nbsp;less than five&nbsp;minute walk to bus stops on Cameron Avenue and Emu Bank Drive, or the Belconnen Interchange.</p>

<p>The artificially created&nbsp;lake,&nbsp;Lake Ginninderra, is right at the doorstep, as is the&nbsp;Canberra International Sports and Aquatic Centre and Canberra Labor Club.</p>

<p>[smartcode_project:default project_id=29898 project_image_fid=170968]</p>

<p>The Republic itself already plays host to a number of dining options, including&nbsp;No.10 Restaurant + Bar Belconnen, Chatterbox Espresso Bar and Moon Restaurant, while outside of the precinct are the likes of the popular&nbsp;Bella Vista Restaurant, Benjamin&#39;s, Black Pepper, L&#39;Artista, and Ruchi.</p>

<p>Convenience continues, with Westfield Belconnen just a block away.</p>

<p>Nightfall is also a short drive from the Calvary Private and Public Hospital Bruce and the main University of Canberra campus, fulfilling medical and educational needs.</p>

<p>[smartcode_project:default project_id=29898 project_image_fid=170974]</p>

<p>Belconnen High School,&nbsp;St. Vincent&#39;s Primary School, Macquarie Primary, Canberra Highschool and Radford College are also close-by.</p>

<p>The focus for Nightfall was one of variety, with no less than 30 different floor-plan configurations available for buyers.&nbsp;</p>

<p>The 22-storey Nightfall comprises 334 one and two bedroom apartments with 12 retail and commercial spaces located in the building itself. There are 12 one-bedroom floor-plans and 18 two-bedroom plans.</p>

<p>[smartcode_project_cta: project_id=29898]</p>


Belconnen is in the midst of a multibillion dollar urban transformation of which Republic merely plays a part, Nightfall is an interlinked part of this new blend of commercial, retail and entertainment offerings.



jordan_55689

The best until last: How Geocon's Canberra apartments Nightfall fit in to their Republic precinct in Belconnen

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<p>The Canberra auction price record has been set by a home in Red Hill which sold under the hammer for $5.85 million.</p>

<p>It was <a href="https://www.realestate.com.au/property-house-act-red+hill-132279254" target="_blank">set on the pricey Mugga Way</a> which is the home to some of Canberra's most expensive residences.</p>

<p>The property was bought by a local ACT family who first saw the home at the premarket VIP viewing.</p>

<p>The mid 1930s-built English manor-style home with dormer windows, high ceilings and French doors is surrounded by landscaped gardens. It has five bedrooms and four bathrooms. </p>

<p> <img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/25/30%20Mugga%20Way%20Red%20Hill%202.jpg"></p>

<p>There's a banquet size dining room with an original open fireplace, a formal lounge with open fire and stained-glass feature windows and a family room with cedar ceiling.</p>

<p>A three car garage with 460 bottle wine cellar sits separately from the main residence. Upstairs there's a games room and a self-contained one bedroom apartment. </p>

<p>In the vast 5,110 sqm grounds is a 16 metre swimming pool with a conservatory like pool house and a full size tennis court.</p>

<p>Peter Blackshaw agents Mario Sanfrancesco and Andrew Chamberlain secured the sale.</p>

<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p>“A strategic four-week marketing campaign included a mix of print media, digital, social and local radio advertising, lead to interest by several well- positioned parties”, Sanfrancesco said.</p>

<p> <img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/25/30%20Mugga%20Way%20Red%20Hill%201.jpg"></p>

<p>The property was trading for the first time in over three decades.</p>

<p>“The home presented a rare opportunity to buyers – it’s not often that a home of this calibre, set on a large 5,110sqm block comes to market – nonetheless, backing onto Red Hill Nature Reserve”, Sanfrancesco added.</p>

<p>“Buyers looking for this calibre of property are quite particular in their requirements.</p>

<p>When they find a property that meets those requirements, they are willing to act quickly - so marketing campaigns at this level need to create both impact and urgency.”</p>

<p>Sanfrancesco said the number of purchasers at the top end of the market is increasing.</p>

<p> <img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/25/30%20MUGGA%20WAY%20RED%20HILL%204.jpg"></p>

<p>"We expect to see more movement at this end of the market over the coming months.</p>

<p>Recently Hotspotting's Terry Ryder said Canberra is undoubtedly <a href="https://www.urban.com.au/news/104582-canberra-undoubtedly-one-of-the-steadiest-property-markets-in-australia-hotspotting-s-terry-ryder" target="_blank">one of the steadiest markets in Australia</a></p>

<p class="p1"><span class="s1">"The national capital is undoubtedly one of the steadiest markets in the nation – underpinned by the strongest real estate economy in capital city Australia," Ryder suggests.</span> </p>

<p>The sale broke the previous record which was set two years ago when Luton Properties sold a home on Deakin's Hotham Crescent for $5.75 million.</p>

<h2><strong>Recently listed properties selling now:</strong></h2>

<p>[smartcode_project:default project_id=27728]</p>

<p>[smartcode_project:default project_id=22803]</p>

<p>[smartcode_project:default project_id=29358]</p>

<p> </p>
</div>
</div>
</div>
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jrobinson-rf4aSBido9

Canberra's auction record broken with $5.85 million Red Hill sale

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<p>Apartment vendors across the major capital cities have been securing close to their asking prices, according to CoreLogic</p>

<p>The latest data shows that Canberra is the apartment market where vendors do not need to discount their asking prices by that much.</p>

<p>The median required discount in Canberra is 1.7 percent.</p>

<p>Across the other capital cities there is a prospect that apartment vendors require to adjust their asking prices by between 2.2 percent to 2.6 percent in order to secure a sale.</p>

<p>[smartcode_project:default project_id=2772]</p>

<p>Hobart is the fastest selling city for both apartments and houses.</p>

<p><img alt="" height="458" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/cl_2021_apt_vendors.jpg" width="643"></p>

<p>House vendors are a little more ambitious in their asking prices with the required discount needing to be offered to buyers sitting in the range of 2.2 percent to 3 percent.</p>
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Apartment vendors across the major capital cities have been securing close to their asking prices, according to CoreLogic

jchancellor

Apartment vendors selling at close to asking prices: CoreLogic

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<p>GUEST OBSERVER</p>
<p>The front-page headlines generated this week by Prime Minister Malcolm Turnbull’s promise to link Australia’s major eastern cities by fast rail may be seen by many voters as yet another major infrastructure pledge made hurriedly in the run-up to a federal election that is likely to evaporate just as quickly afterwards.</p>
<p>Fast intercity rail certainly has form when it comes to being put on the table only to be whipped away again. Linking Australia’s two biggest cities by rail would be in the same nation-building category as the Snowy Mountains Scheme, yet we have been talking about it for decades without actually doing it.</p>
<p>How different might things be now if Australia had built the Very Fast Train (VFT), first proposed in 1984 by the then CSIRO chairman, Paul Wild. The plan (on which I worked) attracted the support of leading companies of the day, including BHP and Elders IXL, but was bogged down in taxation issues and eventually scrapped in 1991.</p>
<p>If it had gone ahead, we would have had an infrastructure capable of shaping the new century for Australia’s densely populated east coast, instead of still waiting for it today.</p>
<h2>The route</h2>
<p>The first choice was a coastal route running from Melbourne through the Latrobe Valley (and what a boost that would have been to a region that even then was struggling with its over-reliance on brown coal), the Gippsland lakes (with a branch line to the mountain resorts), the southern New South Wales coastal towns and into Sydney via Wollongong (a rust-belt city at that time that would also have benefited from this investment).</p>
<p>This was later replaced by an inland route identified by the CSIRO and the VFT consortium, after a series of localised environmental protests. Canberra became one of the designated stations on the inland route and the rest is history – there has never been a return to the original route, despite the fact that more than 90 percent of Australians live near the coast.</p>
<h4><a href="/images/2016/04/19/image-20160413-18122-w2r2vx.png" target="_blank">Click to enlarge</a></h4>
<p><img src="/images/2016/04/19/image-20160413-18122-w2r2vx.png" alt=""></p>
<h4>
<span class="caption">Fast rail route proposed in 1987, after being diverted inland via Canberra.</span> <span class="attribution"><a class="source" href="https://www.repositoryofideas.com/resources/VFT-route-map-from-June-1987-pre-feasibility-report.pdf" target="_blank">VFT consortium</a>, <span class="license">Author provided</span></span>
</h4>
<h2>The funding</h2>
<p>Perhaps unsurprisingly, finance was the original project’s downfall. It became a private-sector joint venture in 1987 but collapsed in 1991 when the federal government decided against easing the tax burden on the project’s initial major outlays in return for higher tax overall.</p>
<p>Australian governments have struggled ever since to find ways for public-private partnerships to fund big projects. Until now, perhaps.</p>
<p>This time around, Turnbull has touted the prospect of “value capture”: the financial benefit that the private sector could gain from the boost to urban development around stations – as seen, for example, near Japan’s Shinkansen (bullet train) stations.</p>
<p>In tax increment financing (TIF) schemes, which are more common in the United States for financing infrastructure projects, value capture by governments via increased property rates and taxes has provided a basis for public sector funding. But this has not proved popular in Australia.</p>
<h2>The challenge</h2>
<p>We have even more urban and regional challenges than we did three decades ago. Sydney and Melbourne are each facing rapid population growth and will need to avoid the damaging consequences of urban sprawl and car dependence. Both cities will need to redirect growth inwards, to brownfield and greyfield sites.</p>
<p>Another consideration is how to disperse the population into regional cities, so these areas can also benefit from improved economic activity. Fast rail can potentially help regional cities become part of a “mega-metropolitan” economic region.</p>
<p>For example, a 350 km per hour service connecting Melbourne with Geelong, Ballarat, Bendigo and Warragul would transform these provincial centres into the equivalent of Melbourne’s middle-ring suburbs, where 30-minute commutes are the norm.</p>
<h4><a href="/images/2016/04/19/image-20160413-15868-hprsf4.png" target="_blank"><span class="caption">Click to enlarge</span></a></h4>
<p><span class="caption"><img src="/images/2016/04/19/image-20160413-15868-hprsf4.png" alt=""></span></p>
<h4>
<span class="caption">Travel times in minutes from Melbourne.</span> <span class="attribution"><span class="source">CSIRO/Australia State of the Environment Report, 1997</span>, <span class="license">Author provided</span></span>
</h4>
<p>This route would also be the beginning of an inter-capital fast rail route, from Melbourne to Canberra (possibly via Shepparton), and then running through various population centres, via Badgery’s Creek (Sydney’s proposed second international airport) to the Sydney CBD.</p>
<h2>The carbon case… and a bump in the track</h2>
<p>Almost 8 million passengers flew between Melbourne and Sydney in 2015, making this route the world’s fourth busiest (ahead of Beijing-Shanghai). The carbon savings from a Melbourne-Sydney fast rail link therefore represent a major potential reduction in greenhouse emissions, especially if it is powered significantly by renewable energy.</p>
<p>This obviously wasn’t part of the business case back in the 1980s. But in 2016 it is surely a candidate for the federal government’s Emissions Reduction Fund.</p>
<p>The government’s proposed value capture funding model has a sting in the tail. Privately held land near the rail link and its stations will need to be rezoned and handed to private firms to build facilities (and surrounding developments) that they would then own and operate.</p>
<p>Land acquisition, even with compensation at market value, is generally not welcome in Australian cities. This is just one example of what makes transformational urban change so hard. But this kind of transformation will be critical to the creation of 21st-century cities that are productive, competitive, sustainable and liveable.</p>
<p> </p>
<p><em><span class="fn author-name">Peter Newton is r</span><span style="line-height: 1.3em;">esearch professor in Sustainable Urbanism, Swinburne University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/peter-newton-2278" target="_blank">here</a>.</span></em></p>
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Why Australia should have built fast rail decades ago

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<p><strong>EXPERT INSIGHT</strong></p>

<p>In less than a year, the Australian Capital Territory managed to overtake Victoria, New South Wales, Queensland, South Australia and Tasmania to take out top spot in HIA’s Housing Scorecard Report.</p>

<p>The HIA Housing Scorecard report presents analysis which ranks each of the eight states and territories based on the performance of 13 key residential building indicators, including detached and multi-unit building activity, renovations, housing finance, and rates of overseas and interstate migration.</p>

<p>The Australian Capital Territory has benefited from steady population growth and a stable labour market when compared to other jurisdictions. This has supported strong demand for new homes and renovation activity, which has been boosted by the HomeBuilder program. Activity in the first home buyer sector has also grown strongly. </p>

<p>This is the first time since 2014 that the nation’s capital has topped the Housing Scorecard.</p>

<p>Victoria’s incredible run of housing market success came to an end in 2020. </p>

<p>Victoria consistently ranked in the top two spots from late 2015 to mid-2020. The COVID recession has seen the state slide from first place into sixth in just six months. This fall is due to a contraction in most of the thirteen indicators. </p>

<p>New South Wales has also fallen to its lowest Scorecard ranking since 2012. New South Wales now has just one indicator, multi-unit commencements, remaining in the top two of the nation.</p>

<p>Tasmania, Queensland and South Australia have remained near the top of the rankings, in second, third and fourth position respectively. These states have endured the challenges of the COVID recession with greater resilience than Victoria and New South Wales.</p>

<p>Tasmania’s economy had valuable momentum heading into the COVID recession, underpinned by a substantial volume of home building. Ongoing state government support for home building, including social housing projects, will provide support for the state’s labour market.</p>

<p>In 2020, South Australia recorded its first quarter of positive net interstate migration flow since 2002. Many of these new residents are quickly putting down roots which has provided a significant boost in demand for new detached dwellings.</p>

<p>Queensland, which already had the strongest renovations sector in the nation, has seen a further surge in renovations approvals. The south eastern corner of the state has continued to attract interstate migration from Sydney and Melbourne which partially offset the loss of overseas migration.</p>

<p>The second last ranking for Western Australia hides the remarkable surge in activity since mid-2020. The extent of the recovery is only just starting to emerge in official data. An improving economic outlook for WA, the federal government’s HomeBuilder program and the state government’s support package for residential building has seen owner occupiers and investors return to the market.</p>

<p>The economic disruption in 2020 reshuffled the Housing Scorecard rankings. <br>
The relative strength of residential building activity across the states and territories will be heavily influenced by the take-up of HomeBuilder and other stimulus measures in 2021.</p>

<p><strong>Thomas Devitt</strong><em> is an HIA economist</em></p>
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ACT has topped the nation in HIA's Housing Scorecard: Thomas Devitt

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<p>Australia offers some of the world's most glamourous pools, a number of which can be found in Canberra.</p>

<p>Despite the generally colder weather, that doesn't stop the elaborate and intricate construction of open-air pools across a number of new, planned and under construction developments.</p>

<p>The leading new apartment developer in Canberra is the Geocon Group with 14 different projects, across multiple stages of readiness and completion listed on Urban.</p>

<h2>1. <a href="https://www.urban.com.au/new-apartments/park-avenue-20-allara-street-canberra">The Establishment</a>
</h2>

<p><em>Corner of Gundaroo Drive and Gozzard Street, Gungahlin ACT 2912</em></p>

<figure><a class="colorbox colorbox-insert-image" href="https://www.urban.com.au/new-apartments/the-establishment-corner-gundaroo-drive-and-gozzard-street-gungahlin?ref=srp_listview" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="427" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/establishment_facade.jpg?itok=CC-PYaSy" width="580"></a></figure><p>Inspired by Chicago’s industrial warehouse scene, The Establishment offers one, two, three-bedroom and loft apartments “designed for luxury and forged in style,” the marketing reads. Homes begin at just $313,000 for a one-bedroom, one-bathroom apartment in the complex.</p>

<p>The residence offers private amenities, including a rooftop infinity-edge lap pool (pictured in the title) with outdoor spa and an exclusive outdoor strength and agility gym. It is located just five minutes from Yerrabi Pond and numerous parklands and walking tracks.</p>

<p>The project offers two-bedroom, one-bathroom apartments from $452,900. </p>

<p>It is one of many ACT offerings from Geocon Group and is set for completion in 2021.</p>

<h2>2. <a href="https://www.urban.com.au/new-apartments/aspen-village-corner-reed-and-anketell-streets-greenway">Aspen Village</a>
</h2>

<p><em>Corner Reed and Anketell Streets, Greenway ACT 2900</em></p>

<figure><a class="colorbox colorbox-insert-image" href="https://www.urban.com.au/new-apartments/aspen-village-corner-reed-and-anketell-streets-greenway" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="428" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/aspen_village_pool.jpg?itok=sw07MWeR" width="580"></a></figure><p>Aspen Village features a selection of 1, 2 and 3 bedroom apartments with sweeping views in every direction, from Lake Tuggeranong to The Brindabella Range.</p>

<p>The residence offers price amenities including an outdoor rooftop entertaining area, including BBQs, dining facilities and fire pits as well as a heated infinity-edge pool.</p>

<p>Prices in the Geocon development start from $330,000 for one-bedroom apartments, $440,900 for two-bedroom units and three-bedroom apartments start from $713,900.</p>

<h2>3. <a href="https://www.urban.com.au/new-apartments/grand-central-towers-15-bowes-street-phillip">Grand Central Towers</a>
</h2>

<p><em>15 Bowes Street, Phillip ACT 2606</em></p>

<figure><a class="colorbox colorbox-insert-image" href="https://www.urban.com.au/new-apartments/grand-central-towers-15-bowes-street-phillip" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="430" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/gct_pool.jpg?itok=qiCGSM19" width="580"></a></figure><p>Grand Central Towers comprising two 16-storey and 25-storey buildings is comprised of 448 residences. Around the time of it's announcement in 2018, the Woden development broke the ACT sales record, according to joint developers Geocon and Zapata.</p>

<p>Buyers snapped up more than $100 million worth of property at a special sales event, with the development’s proximity to the Stage 2 of the light rail line being a key factor in the property’s appeal. A rooftop infinity pool also helped.</p>

<p>“Selling 250 units, including a penthouse and 100 per cent of the commercial spaces is a phenomenal outcome not just for us, but for the whole of Woden," Geocon Managing Director Nick Georgalis said.</p>

<p>One-bedroom apartments start at 260,900, while two-bedroom units are available from $541,900. A Penthouse sold for $1.5 million. It is also a Geocon Group offering.</p>

<h2>4. <a href="https://www.urban.com.au/buildings/highgate-260-264-city-walk-street-canberra-city">Highgate</a>
</h2>

<p><em>260-264 City Walk Street, Canberra City ACT 2600</em></p>

<figure><a class="colorbox colorbox-insert-image" href="https://www.urban.com.au/buildings/highgate-260-264-city-walk-street-canberra-city?ref=srp_listview" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="331" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/highgate_pool.jpg?itok=CLbjzjJV" width="580"></a></figure><p> </p>

<p>Morris Property Group's Highgate development in the Canberra CBD in one of their 11 developments. The 18 level high-rise development is home to 184 apartments.</p>

<p>Rising 56 metres into the air, the development is home to a number of amenities including an open-air pool and fitness centre. </p>

<p>The mixed-use development is completely sold out and also features a ground floor retail holding.</p>

<h2>5. <a href="https://www.urban.com.au/new-apartments/high-society-1-edmonstone-place-belconnen">High Society</a>
</h2>

<p><em>1 Edmonstone Place, Belconnen ACT 2617</em></p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/high_society_pool.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="422" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/high_society_pool.jpg?itok=R2DaUM69" width="580"></a></figure><p>Another development that is home to a luxury pool is the new waterfront Republic precinct in Belconnen, High Society, Canberra’s tallest towers.</p>

<p>The twin towers rise above Lake Ginninderra with uninterrupted views of nature. Designed by Fender Katsalidis, the towers will comprise 541 one, two and three-bedroom residences across two 27 level towers and a 135 suite Abode Hotel.</p>

<p>The panoramic floor to ceiling windows let sunlight flood into all bedrooms and living spaces with higher ceilings than the average apartment development. </p>

<p>Also a Geocon development, it features a 'garden wonderland' style resort pool.</p>
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urban.com.au

5 of the best apartment pools in Canberra

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<p class="Body1">I’ve often referred to Canberra as the Goldilocks of the Australian real estate market: not too cold, not too hot, just right.</p>
<p class="Body1">The national capital seldom booms, nor does it ever seem to crash. It’s so even and steady in its performance, it’s downright boring.</p>
<p class="Body1">It’s underpinned by a steady economy, high average incomes, low unemployment and the Territory Government’s close control of residential land supply, designed to keep land prices (and government revenue) high.</p>
<p class="Body1">So it’s no great surprise that the Canberra market is cantering along quite nicely. It hasn’t replicated the boom in Sydney, three hours up the road, but sales activity picked up as 2016 progressed and the number of ascendant markets rose significantly.</p>
<p class="BodyCopy">Most of the pick-up has been in the housing sector, with apartment sales generally declining compared to 2015. The strong house sales activity has resulted in solid price growth, with some sources recording 10% annual price growth, while others suggest 5-6%.</p>
<p class="BodyCopy">Overall, compared to 2015, sales activity was a little down in 2016, but only marginally so. Sales in 2016 were higher than in 2012, 2013 and 2014, notably for houses. The December Quarter is always the highest for Canberra sales, and this was true also in 2016.</p>
<p class="BodyCopy">In terms of total residential sales, volumes have been gradually rising since 2012, when most quarters were a little below 2,000 sales. In 2016, all four quarters delivered well over 2,000 home sales, including 2,400 sales in the December Quarter.</p>
<p class="BodyCopy">The apartment market peaked with around 1,000 sales per quarter in 2014-15 and volumes have been gradually decreasing since then, with about 850 sales in each of the September and December Quarters of 2016. Previous oversupply in this market has now been largely absorbed (Canberra now has the lowest vacancy rate among the capital cities, except for Hobart) and we can expect unit sales to rise again in 2017.</p>
<p class="BodyCopy">Meanwhile, the house sales market has gathered strength and the December 2016 Quarter was the biggest for house sales in the past five years, except for December 2015. The number of suburbs with growing sales activity has increased significantly and is the highest since we began our quarterly surveys three years ago.</p>
<p class="BodyCopy">Overall, the standout characteristic of Canberra is the steadiness of its performance.</p>
<p class="BodyCopy">Another predictable factor in the ACT market is the predominance of the northern part of the city in terms of markets with upward momentum.</p>
<p class="BodyCopy">While there are now growth suburbs across the Canberra metropolitan area, the strongest precincts once again are the Belconnen and Gungahlin districts.</p>
<p class="BodyCopy">Canberra has 19 suburbs classified as <em>Rising Steadily</em> markets and 11 of those are in the Belconnen (six) and Gungahlin (five) districts in the north of the metropolitan area.</p>
<p class="BodyCopy">These districts also have a large number of suburbs characterised by their consistent sales levels.</p>
<p class="BodyCopy">Suburbs with rising markets in the Belconnen District include Flynn, Bruce, Macgregor, Kaleen, Holt and Evatt, along with Amaroo, Bonner, Gungahlin, Ngunnawal and Palmerston in the Gungahlin District.</p>
<p class="BodyCopy">In Holt, house sales have risen from 20 to 30 to 33 to 40 in consecutive quarters, while Macgregor is up from 33 to 37 to 46 to 51. Both are suburbs with median house prices around $450,000 and attract buyers for their relative affordability (Canberra’s median house price is around $650,000).</p>
<p class="BodyCopy">There are growth markets elsewhere as well, including in the Tuggeranong and Woden Valley districts, as well as in some of the inner-city areas.</p>
<p class="BodyCopy">But the most typical Canberra suburbs are the ones with steady sales levels. In Dunlop in the Belconnen District, sales in consecutive quarters have been 35, 39, 37, 36, 34, 38, 40, 41, 40, 38 and 36 over the past three years. That kind of steadiness is what Canberra real estate is really about.</p>
<p class="BodyCopy"><span>T</span><em>erry Ryder is the founder of </em><a href="https://www.hotspotting.com.au/" target="_blank"><span class="s2"><em>hotspotting.com.au</em></span></a><em>. You can  </em><a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E" target="_blank"><span class="s2"><em>email him</em></span></a><em> or follow him on </em><a href="https://twitter.com/hotspotting" target="_blank"><span class="s2"><em>Twitter.</em></span></a></p>
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terryryder-YECXbqmri2

Canberra market cantering along nicely

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<div>A bit of early disclosure: I'll admit here straight away that I had a few gripes with the Grattan Institute during the recent election campaign when I felt they were twisting 'facts' to suit their arguments. For example:</div>
<p><a href="/images/2016/10/24/Grattan.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/Grattan.jpg" alt=""></p>
<p> </p>
<div>Over years of experience in housing markets, I've literally never heard of anyone paying a huge lump of stamp duty only to sell their investment property because the rents had become too high (before buying another loss-making investment property, and incurring yet more stamp duty).<br><br>Would never happen in a month of Sundays.</div>
<div> </div>
<div>Anyway, I generally don't bear grudges, so we can let bygones be just that!<br><br>Let's move on from that to today's op-ed from Grattan, which recommended that other states follow the Australian Capital Territory (ACT) lead in phasing out stamp duties for a broad based property tax.<br><br>
</div>
<div><strong><span style="text-decoration: underline;">Land tax in the ACT</span></strong></div>
<div> </div>
<div>In theory, phasing out stamp duty - a pro-cyclical levy which discourages labour force mobility (if, for some unknown reason, not landlord churn!) - in favour of higher recurrent property taxes is a sound economic principle.</div>
<div> </div>
<div>Of course, one always fears that new and additional taxes raised will be frittered away on infrastructure white elephants, while those of us that have already paid their stamp duties are naturally inclined to be grouchy (in the same way that I'm bound to think that Chartered Accountants shouldn't have open book exams, because we didn't 'back in my day'). </div>
<div> </div>
<div>Overall, I tend to agree with most of Grattan's points, with stamp duties being an inefficient if extraordinarily lucrative levy. </div>
<div> </div>
<div>In fact, I wrote a piece myself for <em>Property Observer</em> back in 2013 which discussed precisely the potential benefits of introducing a progressive and recurrent property tax (i.e. not necessarily a straight land tax). </div>
<div> </div>
<div><a href="/images/2016/10/24/ACT4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/10/24/ACT4.jpg" alt=""></div>
<div>
<strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Canberra housing</span></strong>
</div>
<div> </div>
<div>That said, five years in to the experiment, there was no analysis provided by Grattan of the impact of the tax reforms to date on the housing market in the nation's capital itself. </div>
<div> </div>
<div>As always, of course, it's impossible to isolate the impact of shifts in property taxes.<br><br>We can't after all run a parallel universe wherein another version of Canberra sticks with the old regime as a control experiment (Lord knows, just the one Canberra existing in our own Universe is plenty!).</div>
<div> </div>
<div>In any event, here's a quick look at what's been going down.</div>
<div> </div>
<div>The ABS Residential Property Price Indexes to 30 June 2016 showed established house prices rising by +8.0 per cent, and a +6.0 per cent increase for all dwellings - rates of price growth which in a healthy market should be resulting in a strong supply response.<br><br>Anecdotal evidence suggests that house prices have been going a bit silly in parts of Canberra, though I do worry about the outlook for the new apartment market in the city.</div>
<div> </div>
<div>Investor loans have understandably declined due to the inevitable uncertainty of change. This may in part be due to tighter lending restrictions introduced by APRA in 2015, and in any case many would argue that lower investor loan activity is on balance a good thing.  </div>
<p><a href="/images/2016/10/24/ACT1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/ACT1.jpg" alt=""></p>
<p><br><span>Less thrillingly, detached house approvals have tanked.</span></p>
<p><a href="/images/2016/10/24/ACT1-1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/ACT1-1.jpg" alt=""></p>
<div>The trend in monthly new house commencements has basically crashed in the ACT, down by more than 50 per cent since the beginning of 2011.<br><br>Attached dwelling commencements, on the other hand, have held up much better, perhaps reflective of record low interest rates, a structural shift towards attached dwellings, as well as strong pre-sales to offshore investors.<br><br><strong><span style="text-decoration: underline;">Long lead times</span></strong><br><br>Whatever the causes, with the long lead times for apartments there are presently more than 5,000 dwellings under construction in the ACT, of which only 600 or so are detached houses. </div>
<div> </div>
<div>As a result of the above dynamics, vacancy rates in the capital have nosedived from 2.5 per cent in 2014 to just 1.1 per cent, even though population growth in the entire territory is tracking at just 5,000 per annum.</div>
<p><a href="/images/2016/10/24/VR.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/VR.jpg" alt=""></p>
<p> </p>
<div>According to SQM Research, after a lag asking rents have soared lately, up by +12.3 per cent over the past year for houses, while even apartment asking rents have ripped +9.3 per cent higher. And this through a period when nationally rental growth is tracking at two decade lows.</div>
<div> </div>
<div>Granted this vast increase in asking rents is yet to be reflected in the ABS consumer price indexes, which lag significantly. The figures for Q3 2016 will be released next week.<br><br>But in any case, when the 5,000 dwellings under construction eventually hit the market, rents for apartments at least should eventually return to flat or falling in real terms.<br><br><div class="separator"><a href="/images/2016/10/24/Z1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/10/24/Z1.jpg" alt=""></div>
</div>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<div>No strong conclusion either way here.<br><br>As noted, we can't readily know the counter-factual, while some of the prevailing housing market dynamics in Canberra may be related to restricted land release, in particular the lack of responsive detached housing supply. </div>
<div> </div>
<div>On taxes, my view is that homeowners shouldn't have to pay twice, and that will no doubt be the view of most other homeowners too.<br><br>Therefore in the real world the most populous states would find it extremely difficult to phase in such a tax with the required long exemption period for existing homeowners, due to the initial revenue shortfall (look at the unprecedented stamp duty windfalls being delivered in New South Wales, for example).</div>
<div> </div>
<div>I'd also be very wary of declaring the ACT experiment an unqualified success while even in a low density market such as Canberra with moderate population growth asking rents for houses are rising at more than twelve times the rate of inflation!</div>
<div> </div>
<div>Nevertheless, it looks to me as though the rental market will probably correct itself in time with a flood of new apartment stock in the supply pipeline.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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pwargent-M4siyDbqQY

Asking rents soaring in Canberra, but why? Pete Wargent

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<div>EXPERT OBSERVER</div>
<div><span> </span></div>
<div><span>Despite a record investor boom since 2013 vacancy rates are now falling as investment loans are squeezed harder, with the national rental vacancy rate down from 2.3 per cent to 2.1 per cent over the year to September 2018 according to SQM's latest release. </span></div>
<div><span> </span></div>
<div><span>In absolute terms, that represents a decrease from 72,955 to 70,172 rentals. </span></div>
<div><span> </span></div>
<div>
<span>Every month I'm bombarded with theoretical constructs about how Canberra's land tax experiment won't impact the rental market...and</span><span> every month the rental vacancy rate falls further, now down from about 2</span><span>½</span><span> per cent to just 0.6 per cent since taxes were initially all but doubled. </span>
</div>
<div>
<span><br></span><span>I guess the idea was that people in the ACT earn high incomes so homeowners can afford to pay exorbitant taxes, but unfortunately ludicrously high taxes don't discriminate and it's turning out to be a disaster (especially for asset-rich but income-poor homeowners, and now for renters too). </span><br><span><br></span>
</div>
<div><span>The ABS rental CPI index has more lag than my nanna's boiler, but more timely industry asking rents indices are now pointing to double-digit rental price increases for the nation's capital. </span></div>
<div><span> </span></div>
<div><span>Indeed, SQM Research's asking rents index shows the median asking rent for houses increasing by 31½ per cent over the past three years.</span></div>
<div><span> </span></div>
<div>
<span>Plotted below are the capital city vacancy rates reported by SQM Research on a 6mMA basis so that you can see the trends.</span><br><span><br></span>
</div>
<div>Click here <a href="https://2.bp.blogspot.com/-3RxbEjERnck/W8X2yGCInEI/AAAAAAAAsZY/f4GIMl4KzdAZAGf9ItxZ555CwkI0nYt8wCLcBGAs/s1600/SQM1.jpg" target="_blank">to enlarge.</a>
</div>
<div><span> </span></div>
<div class="separator"><span><img src="https://2.bp.blogspot.com/-3RxbEjERnck/W8X2yGCInEI/AAAAAAAAsZY/f4GIMl4KzdAZAGf9ItxZ555CwkI0nYt8wCLcBGAs/s640/SQM1.jpg" width="640" height="358"></span></div>
<div class="separator"> </div>
<div class="separator">
<p>Ouch.</p>
</div>
<div>
<span><strong><span style="text-decoration: underline;">Hobart rentals evaporate</span></strong></span><br><span><br></span><span>Hobart has increased in popularity over the past few years, but with banks either dithering or knocking back investor loans the rental stock has now totally evaporated.</span>
</div>
<div><span> </span></div>
<div><span>With median asking rents in in the Tasmania capital city already up by 29 per cent over the past 3 years new rental supply should be abounding.</span></div>
<div><span> </span></div>
<div><span>But instead it has completely crashed to sit close to the lowest level on record for any Australian capital city at just 0.4 per cent. </span></div>
<div><span><br>Asking rents for houses in Hobart were up by more than 6½ per cent over the past quarter alone. </span></div>
<div>
<span><br>With only 108 (!) rental vacancies now remaining - please see the definition of a rental vacancy before emailing me - Hobart rents are now destined to increase by more than 50 per cent through this cycle.</span><br><span><br></span><span>Meanwhile kamikaze commentators continue to call for <em>tighter</em> lending criteria for investors and scrapping negative gearing.</span><br><span><br></span><span>Before you pile in to Hobart real estate too late in the cycle remember that small markets can be more volatile and building approvals in Hobart are just coming off <a id="LPlnk756867" class="OWAAutoLink" href="http://petewargent.blogspot.com/2018/08/hobart-building-boom" target="_blank">99-month highs</a>. </span><br><span><br></span><span>I suppose a supply shock is one way to get consumer price inflation somewhere closer to the target range, with some forecasters already anticipating another dismal 1<span>¾</span> per cent CPI print next time around. </span>
</div>
<div><span> </span></div>
<div><span>Adelaide is heading in a similar direction, with the vacancy rate now down to just 1.1 per cent. </span></div>
<div><span> </span></div>
<div>
<span><span>Brisbane has considerably more breathing space following its preceding record apartment construction boom, with the vacancy rate down far more comfortably from 3½ per cen</span>t to 2.9 per cent over the past year. </span><br><span><br></span><span>As an interesting aside, check out how seasonal Melbourne's rental market these days as population flows become more fluid, partly due to more international students.</span>
</div>
<div> </div>
<div>Click here <a href="https://3.bp.blogspot.com/-0PuL9sCcSUw/W8YW5Itzm4I/AAAAAAAAsZw/NyweL3IoJ1sg6G74P5mzonQMXxuV8F6FwCLcBGAs/s1600/MEL.jpg" target="_blank">to enlarge.</a><br><span><br></span>
<div class="separator"><img src="https://3.bp.blogspot.com/-0PuL9sCcSUw/W8YW5Itzm4I/AAAAAAAAsZw/NyweL3IoJ1sg6G74P5mzonQMXxuV8F6FwCLcBGAs/s640/MEL.jpg" width="640" height="380"></div>
<span><br></span>
</div>
<div>
<span>Christmas could be interesting this year.</span><br><span><br></span>
</div>
<div><strong><span style="text-decoration: underline;"><span>Sydney elevated</span></span></strong></div>
<div><span> </span></div>
<div><span>The only major city that's seen a meaningful increase in rental vacancies over the past year is Sydney at 19,469 or 2.8 per cent (largely due to investors that bought off the plan a couple of years ago). </span></div>
<div><span> </span></div>
<div><span>Unfortunately for these investors that bought new at inflated prices they'll probably be in negative equity as they settle. </span></div>
<div><span> </span></div>
<div><span>While most of the city doesn't have especially high vacancy rates - for example, the Canterbury-Bankstown region sits only at 2.2 per cent - some parts are experiencing a surge of completions, and thus very high rates of vacancy, including most notably the Hills District.</span></div>
<div><span> </span></div>
<div>Click here <a href="https://4.bp.blogspot.com/-02AnfdeLLGU/W8X2yCqKNjI/AAAAAAAAsZU/DdtwNEpHYrE30_SiNlu0DAQzbAHF-bGdwCLcBGAs/s1600/SQM2.jpg" target="_blank">to enlarge.</a>
</div>
<p> </p>
<div class="separator"><img src="https://4.bp.blogspot.com/-02AnfdeLLGU/W8X2yCqKNjI/AAAAAAAAsZU/DdtwNEpHYrE30_SiNlu0DAQzbAHF-bGdwCLcBGAs/s640/SQM2.jpg" width="640" height="372"></div>
<p> </p>
<div>19,469 sounds like a lot for Sydney vacancies, and it sort of is - arguably about 16,000 would be a rental market in balance - but let's face it, at the present rate of population growth this could turn around into a rental shortage on a dime if investors pull up stumps.<br><br>The summer months tend to be much busier in Sydney and Melbourne these days, so let's see what happens over the festive period.<br><br>Finally, the coal price bust and subsequent super-boom has seen the vacancy rate in the Hunter Valley tumble from sky-high levels in 2015 to just 1.3 per cent.<br><br>There could be an interesting twist in the tail for the coal-mining towns that took such a hit in the aftermath of the resources construction boom.<br><br>The coking coal price has burned up into the stratosphere at $215/tonne (or about A$300/tonne) which is huge for Queensland. </div>
<div> </div>
<div class="separator"><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></div>
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