Canberra prestige property: Prices climb amid low interest rates and demand

Just two months ago, AllHomes put rising premium home prices under the microscope.

Back then the focus was on homes in the outer suburbs ticking over into million dollar-plus sales.

With buyer demand running high and interest rates still at the bottom of their cycle, higher quality homes are now set to breach the $2 million mark.

Homeowner Michael Anderson, whose Quinane Avenue home in Forde is this issue’s cover property, says the increasing prices are as much just simple maths.

“It makes sense when you look at the numbers involved,” he says.

“A 1000 square metre block is worth, say, $1000 per square metre and a 500-square metre home with a build cost of $2000-$3000 per square metre . . . well, it all adds up.”

Agent Nick Slater of McGrath Gungahlin says demand has been running high in the region for free-standing homes.

“Stock levels are low, but there’s a pool of buyers who want to get into the area in the right kind of quality home,” he says.”

• Related: Prestige properties in suburban Canberra
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Slater says there are cashed up homeowners who have seen their home assets significantly appreciate over the past several years.

“They’re now ready to move up into higher quality homes in the $1.5 million to $2 million mark – but finding those properties is the challenge,” he says.

“Many of these tend to be tightly held.”

Slater says the region had been established long enough that families had grown up and adult children were now looking to put down roots close to parents and grandparents.

“I’m also seeing investor interest from the Sydney and Melbourne markets,” he says.

“They see Canberra as a safe market to park their cash because of its long-term stability and growth.”

AllHomes data scientist, Nicola Powell, says more suburbs are pushing into seven figure sales due to an environment of low interest rates and strong price growth.

“Suburbs that might once have been considered less fashionable are being increasingly sought-after because of the value they represent,” she says.

“These outer suburbs are typically characterised by big blocks and new homes. That combination and proximity to schools, shops and transport routes can see faster them gentrify faster as they become increasingly more desirable places to live.”

The outer suburbs maybe charting new price ground, but the inner south is still setting the pace with $2 million-plus sales becoming more a rule than an exception.

Mario Sanfranceso, of Peter Blackshaw Manuka, says $1 million is about an entry price for a free-standing home in a suburb like Narrabundah – but it will probably need refurbishment or redevelopment.

“Two million will certainly get you into the inner south, but you just need to look at the median home price of $2,925,000 for Forrest to see the direction prices are tracking,” he says,

Sanfrancesco says larger apartments are also in demand with buyers prepared to shell out $1 million to $1.5 million and up to $2 million for a townhouse.

“Prices are under pressure because there’s strong demand and a shortage of suitable properties in every segment, even those over $3 million,” he says.

“And demand for quality homes is not just restricted to the inner-south. We’re seeing strong buyer interest in O’Malley and Isaacs.

“The median price for a free-standing home in O’Malley is now just under $1.7 million while Isaacs represents good buying at around $850,000,” Sanfrancesco says.

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Attention grabber

When Michael Anderson, above, with partner Renae Kilmister, bought an interesting architectural shell in Forde about four years ago, the Canberra builder had no idea that it might turn into one of the outer north’s most attention-grabbing homes.

Anderson’s striking modernist-inspired residence, this week’s cover property at 15 Quinane Avenue, could well set a new record in the Gungahlin region when it goes to auction at noon next Saturday, July 22.

“I wanted to customise it into a really comfortable home with quality fixtures and fittings and plenty of outdoor living,” he says.

“I didn’t set out to create a record, but the home is sitting on nearly 1000 square metres of land.

“And there’s just under 500 square metres of living space and 100 square metres of covered alfresco area,” Anderson says.

More than 300 people went through it on the first home open.

“A lot of neighbours are interested to see what it goes for as a gauge to their own property values, but most of the quality homes out this way just stay in the same family for years,” he says.

Behind the circus buzz

This modernist-influenced, contemporary Forde home has created quite the buzz since it was put up for auction.

Its launch on to the market was heralded by a Cirque du Soleil-themed extravaganza with light displays, acrobats, jugglers and contortionists.

Behind all the pizzazz, however, is the reassurance of a quality five-bedroom, four-bathroom residence that sits on nearly 1000 square metres of manicured grounds.

A big family would find a lot to love about this home, from its four-car automatic garage to its spacious and light-filled interior that goes on and on . . . and on.

The lower level features two bedrooms and a rumpus room along with a formal lounge, dining, casual meals, and family room – all anchored by a stunning white chef’s kitchen, and offset by polished timber boards throughout.

Upstairs are three more bedrooms including the sumptuous master retreat with a humungous walk-in robe, stunning ensuite and a further giant living room.

The luxuries don’t end there with some 100 square metres of covered alfresco entertainment area including outdoor kitchen and in-ground pool. Simply sensational.

Auction: Noon, Saturday, July 22, onsite. Inspect: Contact agents, Nick Slater and Justin Taylor, McGrath Gungahlin 0414 212 332, 0414 701 465.