Queanbeyan property market remains steady but some areas have surged

Recently renovated pubs, older homes primed for a facelift, affordability, high rental yields and a massive infrastructure spend. According to agents, these factors are helping drive Queanbeyan’s appeal.

Over the past year, the region’s market has recorded a steady performance, Domain figures show, but there are suburbs in the region where prices have surged, and others that are tipped to be some of the country’s best performing.

Greater Queanbeyan’s median house price of $570,000 was up 1.7 per cent in the 12 months to June 2019, but over the same period house prices in the suburb of Crestwood increased 16 per cent year-on-year to a median of $545,000.

The suburb’s growth has outpaced all suburbs in the ACT. 

Queanbeyan house price growth and declines

Crestwood’s position as the “gateway to Canberra” has bolstered its performance, according to Ray White Queanbeyan and Jerrabomberra agent Ben Mills.

“Being on the edge of Queanbeyan, you have easy access to the city, Fyshwick and the airport,” he said.

“Crestwood is an older established area and you get value for money with older-style homes. A lot of first-home buyers from 25 to 35 years old do work to them.”

Mr Mills said a lot of Canberra-based first-home buyers were playing a large role in the Queanbeyan market, with the median house prices across Queanbeyan well below that of Canberra’s $741,947.

• Related: After a downturn, Canberra house prices have slightly rebounded 
• Related: Jerrabomberra records its first sale over $2 million 

Queanbeyan East recorded growth of 10.5 per cent. The suburb has the lowest median house price of the region at $442,000.

Queanbeyan, the suburb, and Karabar recorded growth of 4.4 and 4.1 per cent, respectively.

This comes as recent research tipped Karabar as the most likely affordable housing market to see the highest growth in the next three years. The report by property research platform, Sell or Hold, forecast growth of more than $150,000.

People might have overlooked Karabar in the past but now many were starting to see the value there, according to Alex Robson of InStyle Estate Agents, who said there were many quality homes in the suburb.

“The affordability for the housing product you are getting, people are seeing the value and are happy to pay that money,” he said.

The most expensive suburb in the region, Jerrabomberra recorded a 2.1 per cent growth to a median house price of $720,000.

In the housing market, the only suburb to record a year-on-year decline was Googong but the drop was marginal at only 0.5 per cent. Over five years, the median house price of $650,000 is down 3 per cent – it is the only suburb to record a five-year decline.

While house prices are mostly going up in the region, the unit market recorded a drop of 5.5 per cent over the 12 months to June 2019, but the decline was concentrated in one area.

Queanbeyan (the suburb) and Queanbeyan East were the only two suburbs in the region where there were more than 50 unit transactions – the benchmark for ensuring an accurate median. 

Queanbeyan unit price growth and declines

In Queanbeyan East, units were down 7.7 per cent year-on-year, but in Queanbeyan units were up 7.4 per cent. But looking at five-year growth, units were up 4.8 per cent over five years in Queanbeyan East and down 3.3 per cent in Queanbeyan.

Despite the declines, Mr Robson said the unit market was strong for investors, with a lot of Sydneysiders investing in the market. He said he had a listing for $140,000 that returned $220 per week in rent, and that all of the inquires had come from Sydney buyers. 

Rental yields for units in Queanbeyan are the strongest of the Canberra regions at 7.1 per cent.