Why Canberra property market worth you look at when investing or buying?
The following few posts we are introducing “Why Invest in Canberra?”. We will introduce you some project we currently have and why it is ideal to invest in Canberra.
Let us discuss some facts about Canberra.
Demographics
Canberra has 1million plus people in the capital region. The population growth is 1.9% and it is the fastest in Australia). 35.35 Canberra residents were born overseas.
Economy
The economic growth of Canberra is 4.25% and it is the fastest growing in Australia, and it has the lowest rental vacancy rate of 0.8%, the average apartment gross rental yield is 5.6%. Canberra is 1 of 3 Australian Jurisdictions with AAA credit rating.
Employment
Canberra has 50+ Federal Government Agencies operating. With an unemployment rate of a low 3.9%, which is amongst the lowest in the country. Average salary for working class in Canberra is $85545 per annum. For an average household, their incomes are $1645.00 per week.
Education
1 in 6 people in Canberra are working in the education industry, with 63000 tertiary students in Canberra, amongst them, 12300 are overseas student. There are 5 universities in Canberra which ranked in the top 150 universities in the world.
Environment
With 70% pure open space and parkland across ACT, and 246 days per year of sunshine crisp clear sky, you definitely will enjoy Canberra. And it is home to the famous Mt Stromolo mountain bike track, you can enjoy the environment while riding bike along the bike track.
Connectivity
Stage 1 for the Canberra Light Rail completed in 2019, further stages are set to completed in the near future. Transport options never been easier for residents in Canberra. And it only takes you 30 minutes to the Canberra International Airport (800 flights per week to all Australian cities and internationally) from anywhere in Canberra.
Food and Drink
ACT is famous with its huge selection of vineyards, with 140 vineyards within 35 minutes from the Canberra CBD, you surely can find your favourite wine. Coffee lovers, Canberra has the #1 baristas in the world, good coffee is just a stone throw away. Food lovers, there are 13 Chef-Hat Award restaurants in Canberra, ummmm yummy!
Entertainment
Canberra is home to 7 National Sporting Teams, including Canberra Raiders, Brumbles, GWS Giant, Canberra Cavalry etc. There are always sporting events in ACT. UNSW Manuka Oval is the home of International Cricket and AFL games. With 58 Museums and Galleries in the ACT region, there are always something to visit.
Tourism
Canberra has 4.4 million visitors per year, according the Lonely Planet’s Best in Travel 2018, it the 3rd best city in the world to visit from a survey of 194000 international visitors.
Industry
Canberra has the reputation of entrepreneurship culture with the largest number of patents and trademarks per capita in Australia. There are over 25000 private companies operate in Canberra. More than 1,144,000 jobs are in private health and social assistance sector in Canberra.
The very attractive point of why invest in Canberra is, there are 0% stamp duty surcharge for foreign buyers and there is 5 points towards permanent residency with an investment property purchase in Canberra. These incentives create a high demand to the Canberra property for overseas investors.
How Does It Compared?
From the graph below, we can see that ACT has the second lowest vacancy rate in the country. And it has the highest Unit Gross Rental Yield amongst all capital cities. With the 0% foreign ownership surcharge on stamp duty, it is the most attractive capital city for overseas investors, and the stamp duty is claimable for the buyers. And with the steadily population growth and labour force growth, it is a good city for investor to invest in with the stabilities and growth. With low unemployment rate and the second highest average weekly wage, it shows that Canberra is a good place to buy in.
Canberra Market
The Canberra market is a unique and positive market. From the above table, we can see that while most major capital cities see a fall in price, Canberra see a positive growth or less fall when compared to other cities.
Overall, Canberra do not follow other cities such as Sydney as the table below
As you can see, for the last decade, Canberra is seeing a up-trend of close to 20% on price. And for the rental market, Canberra is seeing a very good increase during the last decade.
From 2009 to 2012 rents grew to a peak of $600/week for houses and $430/week for unit, followed by falling rents to 2015. As vacancy rates began to fall from 2015, rents have risen to the current level of around $620/week for houses, up from $500 in 2009 and for units is around $440/wee, up from $370 in 2009.
Education
Canberra is famous for it’s ‘University Town’ naming.
Besides being the city with the highest educated residents in Australia, Canberra is also ranked as the 22nd best student city in the world, and third best in Australia behind Melbourne and Sydney in the latest QS Best Student Cities Rankings. Home to six university campuses with 63000 tertiary students from around the world;
Australia National University (ANU), Acton
University of Canberra, Belconnen
University of New South Wales, Campbell
Charles Sturt University, Barton
Australian Catholic University, Watson
Australia National University Medical School, Garran
Of these, the ANU is the nation’s flagship university and it has six Noble Laureates among the staff and alumni. ANU was ranked first in Australia and in the world top 30 universities (QS World University Ranking 2019). It is also first in Australia for graduate employability (Times Higher Education Global University Employability Ranking 2019).
In 2015, there were 28949 university students living in Canberra and 27.29% of these students were living in non-private dwellings, such as student accommodation, hotels etc. while 72.8% were living in private dwellings.
The education industry contributed $3.3billion to the State’s economy in 2016-2017, which is 6.2% of total GSP.
The below figure shows that despite Canberra is relatively a small city, its hosts the third largest student population in Australia.
Prediction
Overall, the price prediction to the Canberra stay positive.
The Canberra market has strengthened in the Autumn 2019 survey and now has more growth markets than at any time since there are quarterly survey for years ago.
The norm now in Canberra is suburbs where median prices have grown by more than 5% in the past 12 months.
It is undoubtedly one of the steadiest markets in the nation. Indeed, we regard Canberra as the strongest real estate economy in the capital city Australia.
As we are talking about the Canberra Market, in the following we have the Dusk Apartment which are selling in Canberra, this modern yet architectural design apartment may be a good investment for you?
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