Where are the hotspot suburbs in the ACT for property investors?
Investors will be congratulating themselves on their ACT residential property assets after some big boosts in median rents in the last 12 months.
Anyone with a family home in Holt would have seen their rental income jump by nearly 20 per cent to $550 per week. The Inner South proved its ongoing appeal with Red Hill and Yarralumla soaring by 11.1 per cent to $900 and $850 per week respectively.
James Carter of Carter and Co Agents says investor activity seems to be fairly evenly spread.
“You could say all of Canberra is a hot spot as far as investors are concerned,” he says.
“What they buy and where they buy is largely up to their individual means and goals.”
Carter says Canberra is seen as a safe bet by many interstate and international buyers.
| Top 10 suburbs with strongest rent price growth for houses across Canberra | ||||
| Suburb | Region | Property | Median weekly asking rent | YoY change |
| Holt | Belconnen | House | $550 | 19.6% |
| Greenway | Tuggeranong | House | $595 | 12.3% |
| Ainslie | Inner North | House | $690 | 11.3% |
| Isaacs | Woden Valley | House | $700 | 11.1% |
| Red Hill | Inner South | House | $900 | 11.1% |
| Yarralumla | Inner South | House | $850 | 11.1% |
| Isabella Plains | Tuggeranong | House | $520 | 10.6% |
| Calwell | Tuggeranong | House | $540 | 8% |
| Deakin | Inner South | House | $858 | 7.9% |
| Torrens | Woden Valley | House | $580 | 7.4% |
“We are seen to be in a unique position with our large government workforce, steady employment and great infrastructure,” he says.
Jess Kercher of McGrath North Canberra says the local residential market exists in its own bubble.
“There’s also probably been some rental catch-up in some of the outlying suburbs that has pushed along some of those rents,” she says.
“And the significant demand for rentals, especially family homes, also puts upward pressure on rents.”
Kercher underscores that point, highlighting McGrath North Canberra’s settlement of around 100 residential rental leases in December and January alone.
“But there are more people seeking rentals than there is supply – that’s another big factor,” she adds.
- Bubble. The Canberra market is running hot for investors – both for yield and capital appreciation – depending on location. Canberra has a unique status, with stable employment, good infrastructure and location acting as investment drivers.
- Family homes. There’s nothing like a solid home on a good patch of dirt as an investment, and the level of return is determined by borrowing capacity and the asset’s location.
- Demand. Canberra’s vacancy rate was less than one per cent in the September quarter – significantly less than the industry benchmark for low vacancy of three per cent. That equals strong rental demand.
Allhomes’ top pick on the market in high rent growth suburbs:
Red Hill
There’s nothing like a new home except, perhaps, a new home in a blue-chip location.
This spacious executive residence sits on some 754 square metres of Red Hill’s finest, with sweeping views over the Inner South.
Space and natural light are hallmarks of this design that delivers 438 square metres of living and plenty of outdoor entertaining.
An over-sized front door opens into a grand foyer that leads to generous formal and informal living areas. The central kitchen boasts a stone island bench with breakfast bar, Bosch gas appliances and a butler’s pantry.
Stacker doors visually expand the living zones and lead on to an impressive outdoor space. The sparkling solar-heated pool is complemented by a covered outdoor entertaining area and a child-friendly level garden.
The master suite is on the lower level with access to an outdoor deck. There’s also a guest bedroom, a second living area and a theatre room.
The upper level comprises two further bedrooms along with a study area and rumpus (or retreat) and balcony access.
Other home features include double glazing throughout, ducted reverse-cycle heating and cooling, and under-tile bathroom heating. There’s a triple garage plus an extra bay for a trailer or storage.
The home is close to a selection of top schools and within minutes of Red Hill shops, public transport and the best of the Inner South lifestyle.
Price guide: $2.75 million +
Private sale
Agent: Carter and Co Agents, James Carter 0413 974 912
Or try these:
Calwell
Price guide: $1.38 million
Private sale
Agent: Hayman Partners, Nigel Wilson 0417 238 945
Yarralumla
Price guide: $1.599 million
Private sale
Agent: Luton Properties Manuka, Sophie Luton 0410 750 413
Greenway
Price guide: $899,900
Private sale
Agent: Independent Property, Bhavya Gupta 0405 777 568
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