Canberra unit sales rise as affordability takes the spotlight

Investors and young professionals have shifted their focus to affordability, with units making up the majority of sales in Canberra this year.

According to the Domain End of Year Wrap 2023 report, units were high on the agenda, making up 51.1 per cent of all transactions.

The report reveals that the most popular property combination, based on sales, was for smaller units comprising one bedroom, one bathroom and a single garage.

When it came to key searches, “ground floor”, “courtyard” and “RZ2” were highly ranked, indicating buyers were keen to have easy access to quality outdoor living spaces.

The report indicated that these factors place the missing middle of affordable housing in the spotlight, with those priced out of purchasing a house now looking for an affordable alternative.

The median price for a unit in Canberra is $554,266, with Domain forecasting unit prices to rise 2 to 3 per cent throughout 2024.

Belle Property’s Leanne Palmer said that while one-bedroom apartments were popular with investors, young professionals keen to get into the market were also dominant buyers.

“We’re seeing new developments offer more one-bedroom apartments, which provide a cheaper price point and make them appealing to a range of buyers,” Palmer said.

Two-bedroom apartments and townhouses are also achieving strong prices.

Palmer recently sold a two-bedroom apartment at 83/52 McMichael Terrace, Denman Prospect, for $620,000, while a two-bedroom townhouse with its own swimming pool at 4 Strong Place, Belconnen, sold after auction for $740,000.

Following units, houses were the second most popular property type to purchase, with a 45.1 per cent share of the market this year.

The median Canberra house price of $1,050,575 is almost double that of a unit.