{"id":2824,"date":"2022-06-15T04:18:42","date_gmt":"2022-06-15T04:18:42","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/canberra-records-first-property-tremor-in-three-years-but-is-a-quake-looming\/"},"modified":"2022-06-15T04:18:42","modified_gmt":"2022-06-15T04:18:42","slug":"canberra-records-first-property-tremor-in-three-years-but-is-a-quake-looming","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/canberra-records-first-property-tremor-in-three-years-but-is-a-quake-looming\/","title":{"rendered":"Canberra records first property tremor in three years but is a quake looming?"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<p>Canberra has just experienced its first monthly property price decline in three years and there are signs emerging that further headwinds await the nation&#8217;s capital.<\/p>\n<div itemprop=\"articleBody\">\n<p>Canberra, Australia\u2019s second most expensive property market behind Sydney, has experienced nearly three years of unbroken growth but the first tremors have observers wondering if a quake is imminent.<\/p>\n<p>The Australian capital has been a reliable vehicle for capital growth but has recorded its first monthly decline since July 2019.<\/p>\n<p>The latest CoreLogic Home Value Index showed that Canberra <a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/the-pockets-of-sydney-defying-the-downturn\">joined Sydney<\/a> and Melbourne as the only capitals to decline to end of May.<\/p>\n<p>Although Canberra dwelling values increased 2.2 per cent in the three months to May, softer house values and affordability constraints are likely to have had an impact.\u00a0\u00a0<\/p>\n<p>Those who bought before covid struck are hardly panicking yet. Canberra housing values remain 37.9 per cent higher than pre-pandemic levels.<\/p>\n<p>But there are clear signs the heat is coming out of the market, reinforced by auction clearance rates dropping each week to now sit at a modest 59 per cent compared to 83 per cent at the same time last year, in line with Sydney <a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/victoria-dominates-list-of-affordable-property-investment-opportunities\">and Melbourne<\/a> but well below Adelaide\u2019s 79 per cent.<\/p>\n<div style=\"width: 33.333%; height: auto; float: left; margin-right: 20px;\"><img fetchpriority=\"high\" decoding=\"async\" style=\"width: 100%; max-width: 266px; height: auto; max-height: 355px;\" src=\"https:\/\/www.apimagazine.com.au\/media\/misc\/Richard-Luton-Founder-and-Director-Luton-Properties.jpg\" alt=\"Richard Luton, Founder and Director, Luton Properties\" width=\"266\" height=\"355\"\/><\/p>\n<p class=\"caption mtn\">Richard Luton, Luton Properties Founder and Director<\/p>\n<\/div>\n<p>Luton Properties founder and director Richard Luton said they were witnessing a drop in demand.<\/p>\n<p>\u201cI always say Canberra is a few months behind the other big cities,\u201d <span>he said.<\/span><\/p>\n<p>\u201cWe\u2019ve still got a handful at each auction and we are still able to achieve the good prices we were able to achieve six months to a year ago, but there\u2019s been a drop off of buyers.\u201d<\/p>\n<p>Houses selling for more than $1 million this week were <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=10679&amp;text=Aranda%20ACT%202614\">Aranda<\/a>\u00a0($1.8m), <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=11919&amp;text=Garran%20ACT%202605\">Garran<\/a> ($1.7m), <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=615&amp;text=Narrabundah%20ACT%202604\">Narrabundah<\/a> ($1.3m) and <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=10074&amp;text=Chapman%20ACT%202611\">Chapman<\/a> ($1.2mb).<\/p>\n<p>Canberra-based property management agency Blackshaw, principal Michael Braddon said last week saw a record price for the Inner North, $4.6 million for a house in north Canberra.<\/p>\n<p>\u201cThat\u2019s the highest price paid for a property in that part of the city ever.\u201d<\/p>\n<p>However, he says overall property prices are not out of control like they were last year.<\/p>\n<p>\u201cWhat we are seeing is, if people can see themselves living in a property for a long period of time and it suits their family&#8217;s needs, then they\u2019re willing to fight tooth and nail for those properties.<\/p>\n<p>\u201cFor them it doesn\u2019t matter what the markets doing, it doesn\u2019t matter how strong or weak the market is, they\u2019ll go hard at those properties and that\u2019s always been the case in Canberra.\u201d<\/p>\n<p>Recording the highest negative growth were <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=13763&amp;text=Ainslie%20ACT%202602\">Ainslie<\/a>, <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=2837&amp;text=Dickson%20ACT%202602\">Dickson<\/a> and <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=4719&amp;text=Watson%20ACT%202602\">Watson<\/a> (-3.4 per cent, -3 per cent and -2.2 per cent), although median house values remain high there ($1.5m, $1.2m and $1.2m respectively).<\/p>\n<p><strong>Fewer buyers<\/strong><\/p>\n<p>Mr Luton noted clearance rates remain good but the number of buyers was waning.<\/p>\n<p>\u201cThere\u2019s fewer buyers compared to the multitudes we had last year when we were getting groups of 20 to 30 at auctions, where we\u2019re probably averaging now five or six people.<\/p>\n<p>The RBA\u2019s 0.5 per cent interest rate has also not sent the shockwaves seen in other states and territories in Canberra but there are signs of caution.<\/p>\n<p>\u201cWe had the drop off of numbers after interest rate rises but the election definitely hasn\u2019t affected Canberra and I think we\u2019re pretty much a Labor city anyway, so it hasn\u2019t been an issue.\u201d<\/p>\n<p>\u201c<a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/a-difficult-day-for-homeowners-forced-to-find-more-mortgage-money\">The interest rate rise<\/a> no doubt has been a concern but still lot of people have had their money approved and they\u2019re able to go out and borrow, but no doubt there is caution from some buyers,\u201d he said.<\/p>\n<p>Home sale volumes provide guidance on housing demand, and the portents are not bright for Canberra.<\/p>\n<p>Sydney recorded the largest drop in estimated home sales, down 33.4 per cent in the three months to May compared to the same period in 2021. Canberra (-21.6 per cent) and Melbourne (-21.3 per cent) also recorded significant reductions in activity.<\/p>\n<p>Ever-tightening rental vacancy rates that have hit 0.5 per cent are ensuring Canberra still offers investors an angle to pursue, with the nation&#8217;s second tightest and most expensive rental market.\u00a0<\/p>\n<p><strong>Growing population<\/strong><\/p>\n<p>Population is also an important factor in Canberra property market behaviour.<\/p>\n<p>Mr Luton suggested the city\u2019s stable population and numerous lifestyle options make the city a solid market.<\/p>\n<p>\u201cVery few people leave Canberra.<\/p>\n<p>\u201cWe see a lot of people who buy to live here, who say they\u2019ll be taken out in a box.<\/p>\n<p>\u201cThey might go to Queensland for a while but they always seem to come back because we\u2019ve got amenities; hospitals without waiting lists, and private hospitals as well, great universities, the University of Canberra, the Australian National University and the schools, excellent restaurants, galleries, the War Memorial.<\/p>\n<p>\u201cWe\u2019re only three hours from Sydney, we\u2019re two hours from the South Coast, we\u2019re two hours from skiing in Thredbo, so we are in a good area,\u201d Mr Luton, who has been a Canberra resident for 43 years, said.<\/p>\n<p>An influx of people moving in from Sydney and Melbourne largely escaping lengthy covid lockdowns are mixed with returning Canberra families.<\/p>\n<div style=\"width: 33.333%; height: auto; float: left; margin-right: 20px;\"><img decoding=\"async\" style=\"width: 100%; max-width: 266px; height: auto; max-height: 355px;\" src=\"https:\/\/www.apimagazine.com.au\/media\/misc\/Michael-Braddon-Blackshaw-principal.jpg\" alt=\"Michael Braddon, Blackshaw Principal\" width=\"266\" height=\"355\"\/><\/p>\n<p class=\"caption mtn\">Michael Braddon, Blackshaw Principal<\/p>\n<\/div>\n<p>\u201cThese days you can work from home, so a lot of these jobs you can be anywhere, you don\u2019t really need to drop into the office each week,\u201d Mr Luton said.<\/p>\n<p>The work from home phenomenon may not, however, be a long-term option.<\/p>\n<p>A recent Property Council of Australia report highlighted a need in Canberra for more than 330 additional hectares of employment land by 2050.<\/p>\n<p>Property Council\u2019s ACT Executive Director Adina Cirson said Canberra\u2019s population is estimated at around 447,000 in 2021, an increase of more than 100,000 people over the last 20 years.<\/p>\n<p>\u201cIt is expected to increase by more than 110,000, or by around a quarter by 2036, according to the Australian Bureau of Statistics\u2019 2022 projections,\u201d<\/p>\n<p>Blackshaw\u2019s Mr Braddon said there are objections locally to Canberra\u2019s expansion.<\/p>\n<p>\u201cIt\u2019s what makes Canberra, Canberra.<\/p>\n<p>\u201cIt doesn\u2019t interest that many people to get any bigger.<\/p>\n<p>\u201cObviously there\u2019s a demand here for people who want to build something new, however, there\u2019s more of a shift for people to want to buy something to knock down, and rebuild.<\/p>\n<p>\u201cHaving said that, the new estates will sell out in five minutes but one of <a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/approvals-fall-but-builders-still-busy\">the challenges now is to get a builder<\/a>.\u201d<\/p>\n<p><img decoding=\"async\" style=\"width: 100%; max-width: 800px; height: auto; max-height: 441px;\" src=\"https:\/\/www.apimagazine.com.au\/media\/misc\/Mean-dwelling-price-states-and-territories.jpg\" alt=\"Mean dwelling price states and territories\" width=\"800\" height=\"441\"\/><\/p>\n<p><em>Additional reporting by API Magazine Editor, Craig Francis<\/em><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/canberra-records-first-property-tremor-in-three-years-but-is-a-quake-looming?utm_source=API+RSS+Feed&#038;utm_medium=rss&#038;utm_campaign=Latest+Articles\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Canberra has just experienced its first monthly property price decline in three years and there are signs emerging that further headwinds await the nation&#8217;s capital. Canberra, Australia\u2019s second most expensive property market behind Sydney, has experienced nearly three years of unbroken growth but the first tremors have observers wondering if a quake is imminent. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[],"class_list":["post-2824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-residential"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Canberra records first property tremor in three years but is a quake looming? | Urban Buyer: Buyers Agent &amp; Advocates | Best Property Buyers For You<\/title>\n<meta name=\"description\" content=\"Canberra has just experienced its first monthly property price decline in three years and there are signs emerging that further headwinds await the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/royabhishek.in\/urbanbuyer\/canberra-records-first-property-tremor-in-three-years-but-is-a-quake-looming\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canberra records first property tremor in three years but is a quake looming?\" \/>\n<meta property=\"og:description\" content=\"Canberra has just experienced its first monthly property price decline in three years and there are signs emerging that further headwinds await the\" \/>\n<meta property=\"og:url\" content=\"https:\/\/royabhishek.in\/urbanbuyer\/canberra-records-first-property-tremor-in-three-years-but-is-a-quake-looming\/\" \/>\n<meta property=\"og:site_name\" content=\"Urban Buyer: Buyers Agent &amp; 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