Canberra has recorded the highest prices growth for houses and units as well as yields for property investors in the country throughout 2021, finds a market report produced by My Housing Market, Chief Economist, Dr Andrew Wilson.
Commissioned by property developer, Geocon Group, the largest builder/developer in Canberra and recently ranked by the Housing Industry Association (HIA) as the fifth largest privately owned construction company in Australia, the report found Canberra’s property market is outperforming all other capital cities, a trend that is set to continue well into 2022.
Geocon Group Managing Director, Nick Georgalis said this is truly a boomtime market fuelled by continued low interest rates, a strong local economy, still-positive chronic housing shortages, high rental returns together with capital growth and irrepressible buyer confidence.
“The Canberra market remains Australia’s top performing market with property prices and rents set to continue to rise in 2022,” he said.
Median apartment prices sit at over $540,000, an increase of over 17 per cent this year with strong rental returns averaging $540 per week, the highest in the country.
Canberra is now providing investors with the highest gross returns of all the capitals for both houses and units, the report shows, with a total annual return of 24.01% on units generating a yield of 5.51%. (Total annual return includes a combination of capital gain and rental yield growth this year).
In 2021, Canberra also recorded the lowest unemployment rate of 4% of all capitals and the highest average weekly earning of all states of $1,909 per week.
Mr Georgalis said this is an incredible opportunity for investors to take advantage.
“There are three key factors which will see Canberra’s market continue to thrive,” he said.
“It’s a hot property market as investors are still pouring into the market, government programs are expanding and requiring more skilled workers to relocate to Canberra and lastly, large numbers of international students are set to return to the ACT as international border restrictions lift,” he added.
Geocon Group recently launched sales in its newest apartment complex, WOVA which comprises 797 apartments built across four buildings ranging in height from two 12-storey building, one 16-storey building to a landmark 24-storey tower.
The development will also incorporate a 53-room hotel, 2415 sqm of retail space, lap pool and sauna, resident’s private cinema, co-working spaces, contemplative rooftop terrace, fitness studio, bar club lounge, and Chef’s kitchen and dining room.
The precinct amenity will further include alfresco restaurants and cafes, 3,370 sqm of landscaped gardens and a four-level basement carpark for 1000 car spaces.
Sales at the development have been strong with 372 sold in stage one, comprising of 492 apartments across two buildings, since launching recently to the market in March 2021. Approximately 60% has been sold to investors locally and interstate.
Geocon currently has in excess of 963 active apartments currently or soon to be constructed or recently settled with further projects in future planning.
Current projects include:
- WOVA (797 apartments) in Woden Valley, under construction, early stages
- Nightfall (334 apartments) in Belconnen, soon to complete
- Aspen Village (622 apartments), under construction
- Metropol (552 apartments) just settled,
- The Establishment (290 apartments) under construction, and Page 3 of 3
- High Society (542 apartments) which recently settled.
- Grand Central Towers (430 apartments) which recently settled.
A total of 2,595 apartments is due to be delivered by late 2024, across all major areas of Canberra.
Apartments at Geocon’s landmark WOVA residential community, selling successfully to both investors and owner-occupiers alike, start from $299,900 for a one-bedroom apartment.
For more information, please visit www.geocon.com.au.
