Can you afford a slice of the unit market?
Domain data has confirmed Canberra apartment prices have dropped by 2.1 per cent over the June quarter to a median of $415,195.
But the rental ledger has delivered a big uptick with a gross yield of 5.78 per cent, the second strongest in the country, after Darwin.
Local agents say, however, there is a bigger story behind the data.
Ash Costello of home.byholly says the apartment market has a number of segments, each with their own performance dynamics, core buyers and locations.
“Apartments in the inner south and north tend to keenly hold their prices while there’s strong demand for properties along the light rail,” she says.
Costello says a surprising X-factor in a strong sale price has become a property’s appeal to the Airbnb market. This week’s cover property has been earning more than $5000 a month.
“Investors are seeing gross returns substantially higher than traditional rent,” she says.
Boris Teodorowych of Boris Property says Canberra’s economic fundamentals continue to perform strongly within a tighter lending environment.
“There’s continuing strong appetite from developers and home buyers, but all borrowers are having to demonstrate their capacity to service loans in more detail,” he says.
“That does slow approvals and has an impact on the pace of the overall market.”
Teodorowych says the apartment market, however, is still booming with a significant volume of developments under construction and within the pipeline.
“Any price softening is most likely being felt in older properties that can’t compete with standards being set in new products,” he says.
- Location. Apartment buying still conforms to the market truism of “location, location, location”. Developments in traditional blue-chip areas are likely to perform more consistently, particularly as future infill options diminish.
- Old v New. Older properties often offer large floor plans, but welcome space gains can be offset by dated decor, fewer amenities, an absence of elevators and a risk of higher ongoing maintenance costs.
- Lifestyle. Buyers definitely attach a premium to quality apartment developments that enhance lifestyle through low-maintenance living and being within walking proximity of cafes, bars, restaurants, cinemas, transport and recreational options.
Allhomes’ top pick of apartments for sale:
Price guide: $670,00 +
Buyers demanding stunning views and convenience to amenities as a pre-requisite for apartment living will find this NewActon prospect has all the attributes to seal the deal.
And when you add leading edge interior design and a position within the award-winning Nishi building then it’s time to put pen to paper and prepare to move in.
This immaculate two-bedroom, 13th floor apartment is highlighted by an adventurous design that combines sculpturally contoured ceilings, ambient lighting and high-quality finishes to present a fresh approach to lifestyle.
Spaces effortlessly connect interior and outdoors, welcoming in natural light and fresh air. Privacy is created through a combination of sliding screens and blinds while acoustic insulation ensures the apartment remains a tranquil escape from the bustling city below.
The space has been sustainably designed with heating generated through thermal mass capturing solar gains, while cooling is encouraged through cross-flow ventilation.
The apartment’s elevated position offers views toward Lake Burley Griffin, Black Mountain and the leafy grounds of the Australian National University.
Investors might also be tempted by its performance as an Airbnb since February 2017 with earnings of more than $5000 a month. The current owner has a “Five-Star Superhost” status with highly positive online reviews from more than 130 guests.
The apartment also comes with asingle secure basement carpark with a double-sized storage cage.
2 bed 1 bath 1 car
Auction: 6.30pm, October 19
Agent: home.byholly, Ash Costello 0402 718 359
Or try these:
Price guide: $990,000 +
3 bed 2 bath 2 car
Waterfront views and endless sunsets can be enjoyed on the balcony or through the full-height, north-east facing windows of this executive apartment.
Private sale
Agent: Civium Property Group, Matt Shipard 0412 392 284
Price guide: $750,000 +
4 bed 2 bath 2 car
This lovely townhouse in Mountview Estate offers a private sanctuary in the heart of Weston Creek, presenting a lifestyle of convenience with Cooleman Court only metres away.
Auction: 1pm, October 27
Agent: Luton Properties Weston Creek and Molonglo Valley, Justine Burke 0411 878 587
68 Argyle Square, 1 Allambee Street
Price guide: $765,000 +
3 bed 2 bath 1 car
Beautifully manicured gardens, contemporary interiors and exquisite detailing combine to offer a unique apartment in the heart of Reid, close to Glebe Park and the city centre.
Auction: Noon, October 27
Agent: McGrath Estate Agents Gungahlin, Jess Smith 0410 125 475
10/20 New South Wales Crescent
Price guide: $470,000
1 bed 1 bath 1 car
The executive “Grosvenor” complex has the convenience of lift access from the secure parking area, intercom access from the main entrance and everything that a prime Inner South location has to offer.
Private sale
Agent: Total Property Sales, Chris Burke 0498 012 795
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