Should you buy, sell or hold in Canberra's current property market?

Investor interest in Canberra properties appears to be on the rebound with a settled federal election and the gradual relaxing of lending conditions.

Quinten Hodgkinson of Hodgkinson Real Estate says there is still plenty of interest in “buy and hold” properties throughout the ACT and across the border.

“Investors are definitely coming back to the market, particularly in the $450,000-$700,000 price points,” he says.

“Apartments are popular for yield while detached homes are valued for their potential capital appreciation.”

Hodgkinson says there is also interest in cross-border rural properties with plenty of land.

“We often see people try out the lifestyle as renters before taking the step to ownership,” he says.

“The motivation of all groups is similar – a self-sufficient retirement.”

Hodgkinson says increasing ACT rates and land tax are acting as a disincentive to higher levels of investment.

Tim Burke of Luton Properties Weston Creek and Molonglo Valley says location is a primary consideration for investors – whether it be in Canberra’s north, south or cross-border.

“They favour proximity to transport, schools, shops and town centres,” he says.

“And they want to maximise the value in their purchase – whatever the dwelling type.”

Burke says investors with an open mind as to when they exit their holdings might find favour in the current market.

“Supply still hasn’t returned to the levels we would normally see at this time of year,” he says.

“That means a bigger pool of potential buyers that can put upward pressure on prices.”

• Timing. Canberra’s property market is yet to reach full supply. That means there’s a pool of buyers and upward pressure on prices. Timing could be favourable for investors thinking of quitting an asset.
• Location. Investors are flexible in asset location, but favour positions close to town centres or hospitality precincts like Braddon or Kingston along with ready access to public transport, schools and workplaces.
• Cost equation. Detached homes generally offer sound capital appreciation while apartments can deliver competitive yields. The cost side of the equation includes property management fees, maintenance, body corporates, rates and land taxes.

Allhomes’ top pick of properties with plenty of land:

440 Tidbinbilla Road, Tharwa

Price guide: $3 million +

5 bedrooms, 3 bathrooms, 2 car spaces

Here’s a country charmer that comes packed with views to die for and land that goes on forever.

This is a chance to acquire a huge rural land holding of some 272 hectares of leasehold land close to Canberra.

It boasts two houses and numerous sheds and it is well-watered with 15 dams and has a 1.6-kilometre double frontage to the permanent Gibraltar Creek.

A highlight is the gracious north-facing Gibraltar homestead with five bedrooms, formal dining and living spaces, and office plus informal areas that all enjoy magnificent country vistas.

There’s a spacious country kitchen with granite benchtops and plenty of storage.

Comfort is assured through reverse-cycle split system, a Eureka slow-combustion wood heater in the family room plus a wood stove in the kitchen and a Jetmaster wood fireplace in the living room.

There’s a separate double garage with automatic door.

A second residence is located away from the homestead and offers three bedrooms, spacious living areas, cathedral ceilings and a three-way bathroom.

The surrounding land is gently undulating and offers prime grazing, before rising to lighter country with timbered hills. There’s also, unexpectedly, a tennis court, but perhaps that befits a country estate.

Infrastructure includes a large machinery/hay shed with three-phase power, another with dual access and power and an older timber shed and attached workshop with power. There are also cattle yards.

Expressions of interest:  Close 3pm, November 7

Agent: Hodgkinson Real Estate, Quinten Hodgkinson 0412 381 102