Is it possible to buy a unit for under $250,000 in Canberra?

A year of strong house price growth has driven several suburbs out of first homebuyer reach. With house prices now at a record median of $753,516 it is realistic to assume affordability constraints have pushed entry-level buyers further to the territory border, or perhaps to hop over, in the search of a lower price-point. For some buyers, it may have resulted in a reassessment of the type of property that falls within their price range.

Unit prices improved a marginal 0.1 per cent to $426,124 in the December quarter of 2017, this is only 0.4 per cent higher compared to the corresponding period the year before. The record high residential development of recent years has provided a substantial boost to the local construction sector and economy. However, it has lifted the available supply that inevitably has stifled price growth.

Development approvals reached a record high in 2016, with the previous peaks in 2011 and 2010. Development continues to remain elevated in 2018, with approvals producing the fourth highest on record, although they are certainly much lower than the highs of 2016.

For home hunters on a tight budget, it has made the prospect of buying a unit for under $250,000 a possibility.

During 2017 just over 6 per cent of units sold for under $250,000 across Canberra and Greater Queanbeyan. The transactions were spread across 39 suburbs, but there were certain areas that surpassed this proportion.

The outlook was brighter 10 years ago, with 13.6 per cent of unit transactions achieving a sale price below $250,000.

The proportion of units that sold for under $250,000 was greater in 2017 than the 5.1 per cent of units sold during 2012, highlighting the impact of price growth over the past five years.

Buyers on the hunt for a bargain will find greater affordability across the border in Greater Queanbeyan.

Crestwood has the highest proportion of unit transactions that sold below $250,000, with a staggering 84.6 per cent selling below this price point in 2017. Queanbeyan East offered house hunters the next best choice with 56.6 per cent of units sold below $250,000.

Lyons closely followed with 56.5 per cent of units achieving a sale price under $250,0000. This was the only Canberra suburb with more than half of the units transacted in 2017 below this threshold price.

Units below this threshold accounted for 44 per cent of sales in Queanbeyan and 40 per cent of sales in Hackett. In Curtin, 36.8 per cent of units sold for less than $250,000, followed by Hawker at 27.3 per cent and Downer at 25 per cent.

A granular look at the 2017 unit transactions illustrates that it is possible to buy a unit below one quarter of a million dollars. The length of time that a competitively priced unit lingers on the market is another question entirely.