Nicola Powell: The top Canberra suburbs for apartment living

A growing number of Canberra residents are opting for apartment living. Apartments (which include both units and flats) accounted for 16.7 per cent of homes according to the 2016 census, up from 14.1 per cent in the 2011 census.

On census night there were nine suburbs where over half the population resides in an apartment. Canberra’s CBD trumped the list for the highest proportion of residents opting for apartment living at 96 per cent. The second highest proportion of apartment dwellers is located in two Inner South suburbs, Barton and Kingston, with 89 per cent of residents.

Other top contenders include Braddon with 80 per cent and Turner with 77 per cent of residents residing in an apartment. The only suburbs outside of the Inner North and Inner South with more than half of residents calling an apartment home are Belconnen at 69 per cent and Wright at 51 per cent. The final suburbs with over half the population opting for apartment living are Reid at 54 per cent and Griffith at 52 per cent.

Data proves a mounting number of Canberrans are opting to live in a mid- to high-rise development. This is a trend that is likely to be largely driven by affordability constraints. There is no doubt that units offer a more affordable entry price. Home ownership is a hard goal to achieve given house price strength, for some the only way on the property ladder is an apartment purchase. For others it is a lifestyle choice. In the face of affordability constraints, changing lifestyle choices and a swelling population, apartment living is likely to grow in popularity.

Canberra and Greater Queanbeyan’s house price reached $667,500 over the June quarter, rising by 6.5 per cent annually, according to Allhomes data. The constant price rise is certain to dash first homebuyer hopes vying for a chance to break into the market.

Apartment prices have been following the opposite trajectory, with consistent price declines. Prices fell by 2.3 per cent annually to $379,950. Falling prices provide first homebuyers the opportunity to gain market access.

The development boom continues to provide substantial mid- to high- rise development supply, which is weighing heavily on prices. Last year 3370 were approved for construction across Canberra, jumping 17.4 per cent above the peak experienced in 2011 according to ABS building figures.

High-rise development approvals have soared. Four-plus storey developments jumped a staggering 55.4 per cent to 3088 approvals throughout 2016 compared to 1987 approved throughout 2011. Another major difference between the two annual peaks is a decline in one- to three-storey development.

The significant change exemplifies the changing face of Canberra. It is a city that is progressively developing upwards.

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