Hey Team,
Following on from the discussion in the other thread over the last few weeks regarding Canberra's falling rental market, where do you think we're headed in regards to property values?
I'm an owner of 2 properties (and very likely soon to be more). So, I've got an interest in this.
Random thoughts/observations from me over the last few years up until the present...
From my observations, Canberra has been basically flat for 5 years. My PPOR here - I purchased for 400k in 2009. I've done a bunch of renos/GF addition, but had I not done that and it was in the condition I bought it in - I think it would sell for maybe 440-450k now. So, basically in line with inflation.
Reasons for it being flat for 5-ish years? Lots of new developments, change of government, property overvalued in the first place?....etc.
Quick note on rents - The 2010 rental crisis was a bit of a golden time for me, I was easily getting $180 per room from my other housemates, now I'm charging $140. Reasons for the rental market "crash" - lots of new apartments and suburbs etc as discussed in our other thread.
Anyway, whats happened is in the past and although we've not experienced any growth at all, I've still done well and am not complaining. So lets not worry too much about that - lets think about where we're headed.
I went to Steve McKnight's seminar here late last year - he predicted Canberra to be flat/fall for another 2 years, and didn't recommend buying here in the near future (simplified).
I remember some people predicting a 20% or so drop here after the change of government. It hasn't really eventuated? Or has it, and we've just not heard about it? A friend of mine who is a RE agent has said to me that he thinks he's selling places now for $400k that would have been $450k a year ago.
He also said that older stand alone houses (think older suburbs of belconnen etc) he predicts will be in higher and higher demand in the future, as all thats getting built now are either apartments, townhouses, or houses on tiny blocks that look the same as every other house in the street (crace, gunghalin etc).
Personally (not that it matters in the slightest), as I'm going to be a net buyer in the ACT in the next few years, I wouldn't be upset at all to see a further period of no growth. I think long term, being the nations capital and a somewhat "artificial" economy due to the government and public service, we're destined for long term stable growth at least in line with inflation or slightly more.
Where are we headed in the next 2 years? 5 years? Have we felt the public service layoff effects yet? Whats going to happen with the old suburbs with established housing? Whats going to happen with the new suburbs? Will there be a local boom if Labor happens to win the election and makes the ups the public service numbers again?
Look foward to hearing the thoughts from the other Canberra locals and everyone else
Following on from the discussion in the other thread over the last few weeks regarding Canberra's falling rental market, where do you think we're headed in regards to property values?
I'm an owner of 2 properties (and very likely soon to be more). So, I've got an interest in this.
Random thoughts/observations from me over the last few years up until the present...
From my observations, Canberra has been basically flat for 5 years. My PPOR here - I purchased for 400k in 2009. I've done a bunch of renos/GF addition, but had I not done that and it was in the condition I bought it in - I think it would sell for maybe 440-450k now. So, basically in line with inflation.
Reasons for it being flat for 5-ish years? Lots of new developments, change of government, property overvalued in the first place?....etc.
Quick note on rents - The 2010 rental crisis was a bit of a golden time for me, I was easily getting $180 per room from my other housemates, now I'm charging $140. Reasons for the rental market "crash" - lots of new apartments and suburbs etc as discussed in our other thread.
Anyway, whats happened is in the past and although we've not experienced any growth at all, I've still done well and am not complaining. So lets not worry too much about that - lets think about where we're headed.
I went to Steve McKnight's seminar here late last year - he predicted Canberra to be flat/fall for another 2 years, and didn't recommend buying here in the near future (simplified).
I remember some people predicting a 20% or so drop here after the change of government. It hasn't really eventuated? Or has it, and we've just not heard about it? A friend of mine who is a RE agent has said to me that he thinks he's selling places now for $400k that would have been $450k a year ago.
He also said that older stand alone houses (think older suburbs of belconnen etc) he predicts will be in higher and higher demand in the future, as all thats getting built now are either apartments, townhouses, or houses on tiny blocks that look the same as every other house in the street (crace, gunghalin etc).
Personally (not that it matters in the slightest), as I'm going to be a net buyer in the ACT in the next few years, I wouldn't be upset at all to see a further period of no growth. I think long term, being the nations capital and a somewhat "artificial" economy due to the government and public service, we're destined for long term stable growth at least in line with inflation or slightly more.
Where are we headed in the next 2 years? 5 years? Have we felt the public service layoff effects yet? Whats going to happen with the old suburbs with established housing? Whats going to happen with the new suburbs? Will there be a local boom if Labor happens to win the election and makes the ups the public service numbers again?
Look foward to hearing the thoughts from the other Canberra locals and everyone else