The Canberra suburbs where the median unit price is less than $473,304

As soaring prices push the dream of owning a house further out of reach, many Canberrans are opting for an apartment. So, where can you buy an apartment for less than the city’s median unit price?

Canberra’s median unit price was $473,304 for the 12 months to March, an increase of 2.8 per cent from the previous year, the latest Domain House Price Report showed.

The most affordable suburb in which to buy a unit is Gungahlin, where the median unit price is $342,000. This is followed by Bruce at $384,500 and Franklin at $388,500.

There were nine other suburbs where the median unit price was below that of the city.

Sarah Cooper of Luton Properties Belconnen said a number of buyers had opted to purchase an apartment as their first home amid rising house prices.

“First-home buyers aren’t able to afford the median house price in this city. A lot of buyers have told us they’ve even missed out on buying a townhouse because they’re too expensive,” Ms Cooper said.

“So, apartments are the next best thing. A way to get their foot in the property market while they can.”

Local and interstate investors have returned to the market in search of units below $470,000.

“Anything under that median has been very popular, especially the more established units,” Nathan Page of The Property Collective said.

“Canberra has been well insulated from the pandemic, so investors find value for money in Canberra property and under that budget, the market is very hot at the moment with investors.”

Jess Smith of Stone Gungahlin said while buyers were attracted to units in these suburbs because of the affordability it offered, the location was another drawcard.

“These suburbs are in close proximity to town centres and great infrastructure,” Ms Smith said.

“When we look at suburbs like Gungahlin, Franklin and Harrison, it’s not too far from the Gungahlin town centre and the light rail. Professionals working in the city can jump on the light rail, and you’re only 15 minutes from civic.”

Ms Smith recently sold a one-bedroom apartment in Harrison for more than $349,000 to an interstate investor after only one open-home inspection.

“[At] the very first open-home inspection, 11 groups came through, of which, seven were investors, and the remaining were first-home buyers,” she said.

“After that, we had three offers straight off the bat, which just goes to show the strength in the unit market, particularly below that median unit price.”

Usually, the apartment market is known to lag behind the housing market, but since the pandemic, that has changed, Ms Cooper added.

“Buyers are moving more quickly, there’s less negotiation on prices, and I’ve seen days-on-market for apartments definitely decrease,” she said.

“About 12 months ago, we’d be lucky to get four or five groups in an open home, so that buyer pool for units is definitely pushing up.”

Despite the heightened supply of new apartments across the city, Ms Cooper said buyers were looking for established units following the Opal Tower design and construction flaws in 2019.

“Buyers want something a few years old. A development with body corporate history … they’re very well researched,” she said.

“Buyers are still showing interest in recently finished developments, but there are more inquiries and demand for developments that are between two to three years old, and I think that’ll continue to be the case.”