Nicola Powell: Canberra still offers affordable options for first home buyers

The First Home Buyer Report released last week could have left many entry-level buyers in a state of dismay. The narrowing market options helping to exacerbate the feeling of being closed out of the market.

Entry-level buyers do have choice in Canberra by casting the search to a wider scope of property type. The picture perfect detached family residence is fast becoming a receding first home dream. Elevated house prices have pushed even the most affordable suburbs out of the first home buyer budget. The delightful prospect of options becomes possible once units are put into the housing equation. A number of suburbs then fall within the entry-level price point.

The entry budget is determined by the average first home loan approved over the twelve months to the end of March, based on housing finance data released by the Australian Bureau of Statistics. A realistic dollar figure is reached by factoring in the ACT G]government’s First Home Owner Grant, currently $7,000, and a 20 per cent deposit. This equated to the average first home buyer hitting the market with $403,969. It is this average figure that is used as the affordability price-point cut-off.

The district of Belconnen had the highest proportion of affordable suburbs, with eight falling under the first time budget. Hawker is the most affordable suburb in Canberra with a median sale price of $277,500 for a unit, based on transactions over the twelve months to the end of March.

It is a well-known trend that prices tend to slide the further from the city hub. It is always anticipated Canberra would experience this trend to a lesser degree due to the satellite city nature. However many of the affordable suburbs remain at the territory fringe.

The Belconnen district offers the greatest choice for buyers on an entry budget. The following suburbs within reach are Macgregor at $345,000, Holt at $358,500, Florey at $360,000, Belconnen town centre at $380,000, Bruce at $388,000, Page at $395,000 and Kaleen at a median sale price of $399,500. 

Tuggeranong is the next hotspot for buyers keen to break into the market. Six suburbs in the district fell under the average first home budget. Greenway is the districts most affordable suburb with units commanding a median sale price of $350,000. Calwell at $360,000, Conder at $368,000, Gordon at $375,000, Isabella Plains at $376,000 and Bank at $386,000 offer entry-level choice.

Many affordable developments can also be found in the Gungahlin district. Franklin, Gungahlin town centre, Ngunnawal and Palmerston offer a price conscious choice. 

Many mid- to high- density developments are providing opportunities for first home buyers. Moving forward is imperative to provide a diverse array of affordable housing stock to meet community demand. Housing affordability is certainly on the agenda and likely to be until activity is bolstered.

Nicola Powell is a property expert for Allhomes. Twitter: @DocNicolaPowell