The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterTue 11 Oct 16

Six-Year Unemployment Low Drives Optimism In Canberra Housing Market

Canberra

A six-year low in unemployment is providing a welcome boost to Canberra’s residential market, driving demand for housing stock.

According to CBRE’s MarketView report, the more positive employment outlook is being underpinned by improving conditions in the public sector.

CBRE Senior Research Analyst Jacob Fong said house prices in Canberra had been trending up over the past year.

“Strengthening buyer demand is being underpinned by the more positive employment outlook,” Mr Fong said.

“After a three year wage freeze in the Australian public sector, wage increases for some departments have been recorded and there are expectations for more widespread increases as contracts are renegotiated.”

The report shows Canberra house prices lifted 1.2% in the second quarter of 2016 – reflecting a 6.2% increase year on year and bringing the median house price to $588,000.

The rental market also recorded a strong quarter, with median weekly rents increasing 2.0% to $510 in the year to June 2016. Yields tightened 19 basis points from 4.73% to 4.54% in the same timeframe.

Over the past year, Canberra’s labour market has improved significantly, with an increase of 5,100 jobs – reflecting a 2.4% jump on the past 12 months.

“The current unemployment rate of 3.0% is at its lowest level since 2010 and as helped underpin an improvement in rental demand, as shown by lower vacancy levels,” Mr Fong said.

Canberra’s apartment market recorded a slight improvement over the quarter, with prices increasing 0.4% to a median of $407,000.

Median apartment rents lifted 2.5% to $415 per week in the year to June 2016, while rental yields softened from 5.20% to 5.30% during the same period.

Andrew Stewart, CBRE Managing Director, ACT, said continued demand for apartment style living continued to support low vacancy rates in Canberra.

“With yields averaging 5.29%, and a low cost of entry into the sector with the median apartment price of $401,500, Canberra remains a compelling destination for investors,” Mr Stewart said.

Evidencing the trend, houses sales jumped 12.4% to 5,031 over the past year, while apartment sales recorded an increase of 20.9% to 3,842 during the period.

“Owner occupiers in Canberra have also been taking advantage of the low interest rate environment, with refinancing of loans showing a 33.2% spike over the past 12 months,” Mr Fong added.

Residential land estates continue to attract demand, however the strong prices seen over the past year has eased, while demand for prestige housing stock has also increased.

ResidentialAustraliaCanberraReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
The proposal for the gene therapy precinct at Westmead comes as sector investment continues to ramp up…
LATEST
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
3 Min
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
2 Min
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
3 Min
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/six-year-unemployment-low-drives-optimism-canberra-housing-market