Fuelled by record-low interest rates, a strong local economy, positive affordability, and relatively high investment returns, the Canberra housing market is transforming into one of Australia’s most exciting destinations for property investors, with a seemingly irrepressible buyer and seller confidence.
If the nation’s capital is on your radar, here are nine great reasons to invest in Canberra.
1. Affordable property prices
Canberra has a large number of comfortable homes with good design, high energy efficiency and convenient access to the CBD. In fact, ACT is one of the most affordable places to live in Australia when considering the housing price to income ratio. According to the latest CoreLogic report, the median price for an apartment in Canberra is $538,071, compared to Sydney of $824,860 and of Melbourne of $619,443.
2. Popularity growth
The ACT is projected to grow annually by an average of 1.5% between now and 2041, well above the national average. The ACT Government is investing $3 billion in physical and digital infrastructure in the ACT over the next four years and planned funding to support existing and future employment, which has attracted a huge number of people joining this community.
3. Healthy 0.9% Vacancy Rate
According to SQM Research, Canberra has a low rental vacancy rate of 0.9%, which means there is an extremely high demand for renting in the area, a sure sign for investors looking at making their next property purchase.
4. Australia’s #1 University City
Canberra is home to 6 universities that educate over 64K students from around the world. Both the University of Canberra and Australian National University are ranked in the top 10 across Australia. ANU is #1 in Australia and ranked 29th in the world.
5. Educated workforce
While many students choose to study in Canberra because of the high quality of education and comfortable lifestyle, they are staying to work. As a result, the employment growth has been strong in ACT and over the next 25 years, the number of jobs in the area is forecast to increase by one-third.
6. International City
In 2019 the Canberra International Airport serviced around 84,400 international passengers. The numbers speak for themselves. Canberra is growing up fast, as it continues to evolve into a vibrant and internationally renowned city.
7. Permanent residency
Canberra is the only regional area that allocates points towards permanent residency. Owning a property over $250k is worth 5 points in the Canberra Matrix & additionally, the minimum taxable income for 491 visa holders is currently $53,900 pa, which means purchasing a property to assist with meeting the requirements is a good option for the applicants.
At Liviti, our mission is to help all buyers on their property journey to find a suitable property for their lifestyle & needs. If you are considering buying a property, it’s time to consider Canberra!