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Why And Where You Should Invest In Canberra

Lara Osborn on January 6, 2022

Canberra is not only the capital of Australia—but it is also the eye of investment opportunities.

Not only nurturing lovely flora and fauna; according to CoreLogic home value index in December 2021, Canberra has also fostered a steady 24.9% of annual capital growth, awesome median house price and a marvellously low unemployment rate.

Here are some reasons why you should consider putting your money on the nation’s capital, which far exceeds other capital cities, and some of the best suburbs you should know about as an investor.

Canberra: A Rising Star in Investment

1. Strong Labour Market

Jobs will always be a primary reason for relocating and settling down. The ACT has a strong labour market, with the Federal Government providing significant direct and indirect employment. According to the latest labour statistics from the Australian Bureau of Statistics (ABS), Canberra’s unemployment rate sits at 3.8%, putting it below NSW’s average of 4.6%

The strong employment market that offers various job opportunities makes Canberra a safe, desirable place to unlock new beginnings.

2. Population Growth

Canberra has had consistently strong population growth, particularly over the past six years. According to ABS’ latest data, it had a healthy population annual growth rate of 0.2% and is on track to increase nearly double within 40 years.

The population growth paired with the strong labour market makes a major growth driver that promises advancement for the city.

3. Lucrative Median Rental Return

The Australian Capital Territory’s rental market is booming, and it offers more accessible entry points than cities such as Melbourne and Sydney.

Investors have a better chance to obtain a good rate of return with ACT property than in Melbourne or Sydney as the latest rental return for apartments in Canberra is 5.7%, significantly higher than the rental returns Sydney offers at 3.5%, according to SQM Research.

Furthermore, with a nearly 2% difference, the rental yield for units in Canberra is much greater than the average for all houses.

Geocon’s Head of Sales, Adam Morgan states, “You can get more rental yield from a $500,000 purchase here (in Canberra) than you can from an $800,000 purchase in Sydney,” making the annual rental yield in Canberra much more desirable.

With the positive growth the Australian Capital Territory region is experiencing, demands in the rental market are expected to accelerate in the upcoming years.

4. Affordable Median Housing Prices

The property market in Australia’s capital is making it easy to gain wealth for both tenants and homeowners.

Canberra median house prices increased 24.9% over the past year, with a total return of 29.6%.

Source: CoreLogic home value index December 2021

Units have also performed strongly in Canberra compared to Sydney and Melbourne, with a much lower median unit price of only $584,000. The affordable median prices and strong growth make the ACT ideal for investing.

5. Positive Median Weekly Rent

The value of Canberra property has inspired many people to invest.

Canberra’s gross annual rental yields, median weekly rent, and total annual investment returns for both houses and units remain amongst the highest of all the capitals.

The median weekly rent for units in Canberra has reached $540 according to CoreLogic’s Quarterly Rental Review, exceeding the rental property markets in Melbourne of only $487 per week.

6. Booming Economy

The economic growth of Canberra is always among the fastest-growing capitals in the country. According to ACT government media release, Canberra has seen a combined economic growth of 12 per cent over the past three years, supporting the creation of over 3,200 new businesses and more than 16,000 jobs.

Canberra’s population is relatively young, with low unemployment and higher than national average incomes, turning it into one of Australia’s most exciting destinations to live or invest in.

7. Environment and Lifestyle

Canberra is famous for its wide selection of vineyards, with 140 vineyards within 35 minutes from the Canberra CBD. The city also houses 13 Chef-Hat Award restaurants and numerous award-winning baristas.

Additionally, Canberra has a comfortable, mild climate with at least 246 days per year of sunny, clear weather.

Canberra is also home to the famous Mt Stromlo mountain bike track, adding value to the quality of living in Canberra.

The tranquillity the ACT region offers should definitely be something investors keep in mind when selecting an investment property.

Where to invest in Canberra’s Property Market

It is Canberra’s time to shine with our capital city experiencing steady, healthy increases in median property and rental prices. Canberra property is highly sought after in the market!

The stable property market in Canberra outshines most other major cities, and property investors should definitely keep an eye out for these places in the Canberra market:

1. Gungahlin – One of North Canberra’s most desired suburbs

Gungahlin is a highlight in the Canberra market, known for providing fantastic investment opportunities.

It has quickly gained a reputation in the local market as one of North Canberra’s most desired suburbs, with its close proximity to the city centre, natural bushland setting and a large number of new homes in the area.

The growth guaranteed in Gungahlin also makes it a good contender in the Canberra property market.

Gungahlin is benefiting from significant developments currently underway at Gungahlin Town Centre, which will provide an additional 6500 jobs when complete.

Gungahlin is one of North Canberra’s most desired suburbs, with its close proximity to the city, natural bushland setting and a large number of new properties in the area.

Ever-growing and moving at a rapid pace, life in Gungahlin has evolved to become a combination of luxury living and supreme location.

2. Canberra Centre — At the Heart of it All

The bustling Canberra City Centre will put you just moments from every imaginable amenity. Food and fashion. Entertainment and leisure. Universities and schools. Bars and nightlife. Set foot outside at any hour, day and night, and walk straight into the epicentre of contemporary Canberra.

This is a great place for investors who are looking for a safe place to obtain gains. The light rail, new local businesses, education and other services make it a wonderful ground to grow wealth.

3. Woden Valley – Received a Recent Multi-Billion Dollar Regeneration

Woden is just a 10-minute drive from the city centre and showcases a huge range of properties & high-rise apartments without sacrificing an abundance of space and greenery.

The good public transport links and proximity to everyday essentials make the area particularly desirable for both families and independents.

Undergoing major redevelopment with public and private investment, Woden’s Town Centre is a great location for real estate investment; the value of the area is expected to accelerate in the near future.

4. Belconnen – The Most Connected & Convenient Town Centre in Canberra

Belconnen is situated approximately 7 kilometres from Canberra CBD and has access to a variety of public transportation.

It is home to the University of Canberra, Canberra Stadium & Calvary Hospital, as well as cinemas, a library, swimming pools & dozens of eateries that line the picturesque lake.

Belconnen property is only 1 minute away from Lake Ginninderra, 2 minutes away from Belconnen Bus Interchange, 5 minutes away from Belconnen Westfield, 8 minutes to the University of Canberra and 15 minutes away from Canberra City.

5, Tuggeranong – Modern Luxury Living on Canberra’s Unspoiled Natural Fringe

Located only a 20 min drive to Canberra City and 1.5 hours to the South Coast of NSW, Tuggeranong is a family-oriented district with plenty of good schools, ovals and plays areas for children.

The location’s easy access to essential services such as education, hospitals, public transport and retail precincts make it particularly profitable to invest.

The Tuggeranong cultural and entertainment precinct is buzzing with life just moments from your front door.

Still Curious?

If you’re eager to learn more about the best places to invest in Canberra and are after assistance on your investment journey in Australia, please reach out to us today.

We will be delighted to tell you more about our property in Canberra and offer some advice on investing in Australia. Contact Liviti on (02) 9056 4311 or get in touch learn about investment properties available in Canberra.

Sydney Property Market Forecasted To Continually Grow Well Into 2022

Lara Osborn on January 5, 2022

CoreLogic figures released this week showed a 1.0% rise in property values in December and Australia’s housing values ended the calendar year 2021 with a huge 22.1% over the year. So, what does this mean for 2022?

Sydney property market 2022

1. What do the experts predict?

According to CoreLogic’s research director, Tim Lawless, it’s likely that the rate of growth in housing values will continue a softening trend in the monthly growth rate that has been evident since the national index moved through a cyclical high of 2.8% growth in March 2021.

On the other end of the spectrum, momentum has slowed quite sharply in Melbourne and Sydney dwelling markets, with both cities recording the softest monthly reading since October 2020.

“A surge in freshly advertised listings through December has been a key factor in taking some heat out of the Melbourne and Sydney housing markets, along with some demand headwinds caused by significant affordability constraints and negative interstate migration,” Mr Lawless said.

“Combining these factors with the subtle tightening of credit assessments … it’s highly likely the housing market will continue to gradually lose momentum,” he said.

However, Steve Mickenbecker from the Canstar group described the falls as “modest”.

“With lockdowns ending and travel restrictions easing, we can expect further growth in property markets in the coming months,” he said.

In particular, well-located, family-friendly apartments in Sydney’s inner suburbs are likely to perform strongly due to increasing needs from owner-occupiers and investors.

Real estate in Sydney’s regional locations, and in particular in lifestyle locations like the Central Coast, Wollongong & the NSW South Coast should also continue to perform strongly with beachside suburbs likely to outperform the wider overall market.

2. The Rise of the Regions

According to internal migration data released by the Australian Bureau of Statistics (ABS), in the year 2020, there were 233,100 Australians who moved to live in regional areas and 190,200 people that departed for the capitals, and this continues to be among the top trends for 2021.

According to Corelogic, regional markets are regaining momentum in terms of the rate of value growth in the capital city market. Regional dwelling values increased by 6.4% in the three months to December, compared to 5.1% in the previous quarter.

This could be the result of a new wave of demand as buyers exited the extended lockdowns in Sydney and Melbourne. Regional markets, particularly those with a lifestyle appeal, are likely to benefit from increased demand as remote working policies become more common, and demand for vacation homes remains strong despite ongoing international border restrictions.

3. What about the interest rates?

The forecast says that interest rates will remain unchanged until at least the end of 2022, which is in accordance with the recent decision by the Reserve Bank of Australia (RBA) to keep the cash rate at 0.1%. A recent statement that the RBA’s board, “will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range”.

But Mr Louis Christopher, managing director of SQM Research, was quick to point out that any serious rise in inflation next year could result in the RBA lifting interest rates sooner than expected.

“We’re very confident inflation is going to rise next year,” he said. “If the headline inflation rate stays within three to five per cent, perhaps the RBA will try and hold, but if it heads towards six per cent, I think the RBA will be forced to move.

4. Australian prudential regulation authority

The bank suggested that rising house prices will deter some home buyers, while the Australian prudential regulation authority decided to ensure new borrowers can service a mortgage if interest rates jump 3% will put a brake on lending.

Hence, now is an appealing time to get into investment property before the official interest rates rise.

5. Property prices and the economy

As the economy continues to benefit from easing COVID-19 restrictions, the current low-interest rates should continue to support requirements, along with tight advertised supply levels and improving consumer sentiment, according to CoreLogic.

As a result, a pace of capital gain will be more sustainable and there is still plenty of room left in the Sydney property market with values likely to keep increasing throughout 2022 and into 2023.

With the opening of the international borders of Australia, Sydney will quickly become a popular destination for students and highly skilled workers and this will launch the Australian property market to new heights. So, this is the ideal time to get your foot into the housing market before the demand increases!

6. Predictions for Property price growth pattern

Over the last year, Australia’s property values have increased along with property demand at rates not seen in over a decade, and Sydney has led the change.

Increasing at an incredible rate in 2021, Sydney dwelling prices are expected to grow significantly as strong demand from purchasers outpaces the volume of new listings that emerge.

The final word

The property market for next year looks very promising for potential first home buyers and investors. However, in order to reap maximum profits, you should consider buying when the prices haven’t hit the roof also keeping affordability constraints in mind. We understand that buying property can be an overwhelming venture and that is why we are here to guide you!

Contact us

If you are looking to take the next step in your property journey, let us guide you today.

Get in touch with Liviti on (02) 9056 4311 or enquire here to work on your property goals for 2022 and get ahead of the curve.

9 Reasons Why You Need A Property Consultant

Lara Osborn on January 5, 2022

Are you looking into buying a property for yourself and finding it overwhelming? As prospective buyers, you should know that it is completely normal. There are a lot of steps involved in buying a property, especially when you are buying for the first time.

If you are making decisions regarding real estate, there are a few reasons why you should seek expert advice from an experienced property consultant at your local real estate professionals.

Why Property Consultant?

1. Better access to all properties listed

Buying a property is likely to be one of the largest purchases you will ever make and with many properties available on the market, it is easy to become overwhelmed.

Liviti has your back and our property advisors assist with carrying out research, without the need to scour through multiple sources and websites. We can help you narrow down your options and assist with selecting a property that is suited to your needs, by analyzing things such as your budget, buyer type, ideal location, construction companies involved and answering all the other questions that you might have.

2. Update on amenities & regional areas

It is always important to be up to date with the property market trends and analyzing market trends. Our team of property consultants has years of experience in the property industry and can provide you with information on trends in the housing market and the profile of amenities in your area of interest, such as schools, roads, shopping centers, parks, sports fields and public transport connections.

If you are looking to purchase an investment property, our team can deliver updated rental statistics on your area of interest, as well as an estimated rental income based on the current rental market in the area.

3. Reduce stress

Throughout your property searching journey, you will normally fall in love with several properties. As experienced property advisors, our team can help you narrow down your options to two or three.

This makes it much easier to make a selection because we can help you compare each property side by side to see which one is ideal for you. We have your best interests in our hearts and are happy to hear you out and clarify your doubts.

4. Finance options made simple

Purchasing a home, an investment property, or refinancing your current mortgage can seem confusing, though we want it to be simple. To simplify the process we can recommend a team of highly experienced property consultants with detailed services and assistance. Real estate consultant manage and analyze the best possible options for you and lighten the burden off your shoulders.

The team of real estate consultants harbor unmatched expertise and will always act in your best interest and ensure that your loan option is tailored to your situation and any specific requests.

5. Continuity with your real estate agent

Once you know your real estate consultant, the relationship does not simply end with the sale. You can always request advice and handle your next deal with the certainty of experience and trust that you built with the agent.

The property investment or property buying journey is a very personalized experience, so getting the service from a familiar real estate consultant would help you save time.

6. Private meeting with property consultants

A meeting with our property consultants is a one on one personal experience that is tailored to your specific requirements, ensuring that you get the most out of your time.

We understand that everyone’s journey is different – some are looking into real estate investment whilst the others are first home buyers. Considering that not every property will fit everyone, therefore a meeting with us will help you determine your needs quickly.

7. A Consultant Inspects the Condition of the Property

Another part of a consultant’s services is that he or she inspects the property’s condition to ensure it is ready for occupancy in a safe manner.

In addition, he or she will ensure that all necessary amenities that your company requires for daily operation are present. You would be surprised to learn how often one misses out on tiny details which they wouldn’t expect to go wrong but after years of experience, real estate agents would be quick to alert you.

8. Settlement Guidance

Professional real estate consultancy companies ensure the security of before and after-sales comprising transfer of title deeds, housing insurance, electricity, water, natural gas subscriptions, getting tax numbers, legal research on the property, sales contracts, payment methods, and advocacy services.

9. Stay on top of the investment game

Property consultants can also help you get ahead of the investment game. Since they are experts in staying on top of current market trends and movements, they will most likely know the best suburb to invest in before the price skyrockets.

Their knowledge will also come in handy when identifying and negotiating for a good investment. Having a good understanding of the process of renting, buying and selling a real estate asset can ultimately help you maximize your profit.

WHY LIVITI?

Liviti is here to assist you with providing you with the information you actually want for a property, as well as supporting you and your needs on your journey in the real estate industry.

Our real estate consultants not only have a valid real estate license but are also experts in analyzing market trends and are well aware of the real estate laws.

At Liviti, we understand the property buying journey is very unique and can take some people 1 week and others 3 years. It is about making a complex process simple and helping each individual at each stage of the process; from research, finance, selecting the right property, buying and selling process to understanding the contracts, property management and settlement.

Talk to a property consultant at Liviti about purchasing an apartment today on (02) 9056 4311, or Enquire here and let us help you make the best decision possible.