The key things to consider before buying a Canberra apartment

We have heard both sides of the argument: we need more apartments to accommodate the growing population. Canberra’s rental yields are high, the market is tight, it’s a good time to invest.

We’re also warned of falling prices brought on by a surge in new builds. Construction activity can be plainly seen across Canberra.

There is truth to both sides of the argument: there are suburbs and developments that have seen solid growth in recent years, while others have stagnated or even declined in value.

Independent Property Group project marketing director Wayne Harriden says with so many units hitting the market, it’s more important than ever to choose wisely.

Whether you’re a first home buyer, downsizer or an investor, an apartment’s potential for growth should be one of the key considerations.

Pod Projects Group managing director Paul O’Donnell says an apartment’s long-term appeal will come down to two key factors: the location and the quality of the home.

For location, he suggests areas that are forecast for population growth.

Look to areas where both the government and the private sectors are investing, O’Donnell advises, and points to Gungahlin, Molonglo Valley and Kingston as examples of regions where apartments will see growth.

The first signs of new infrastructure also represent a good time to pounce. Price growth has already been noted in suburbs set to benefit from the light rail.

Harriden says sometimes it helps to be one of the first in a growing area.

“If you bought one of the first apartments on the water at Kingston Foreshore you might have felt you were paying a lot of money, but now you’d be laughing,” he says.

“Look to the future and not just what you’re getting today.”

This sentiment applies not only to location, but also to the apartment itself.

“There’s a lot of standard apartments these days and I think they need to look for something that is a little bit unique,” Harriden says.

“Somewhere where the developer and the team have put in a lot of time, effort and energy.”

A good architect will consider the future when designing a building, JUDD.studio director Nathan Judd says.

“Buildings exist for decades, if not centuries, we take very seriously the crafting of this environment to provide great future amenity to the occupant,” Judd says.

“During the design phase we also endeavour to maximise every planning opportunity the site presents, including view, aspect and to leave the door open for change and future needs.

“We also look to create buildings that have a strong identity and appeal and a contributor to the vibrancy of an area. When designing apartments, we always think of them as future homes, rather than as an investment vehicle.”

The layout should be a major consideration, Judd says.

“The flow of an apartment is one of the key areas we focus on, to minimise area lost to circulation and to maximise the size of living areas,” he says. “Functional, efficient space is key.”

Beyond the apartment itself, O’Donnell says onsite facilities have also become more important.

“Swimming pools, gardens, entertaining areas – that sort of thing definitely gives the development a point of difference for live-in owners and tenants,” he says.

Harriden agrees that these features can set a building apart in a sea of cookie-cutter apartments. He says homes that are part of a precinct hold a similar appeal.

“You’re actually buying into a community,” Harriden says.

“When it comes time to sell, you’re selling something that is more than just a unit in an apartment block.”

What to consider

• Location – Is this an area set for growth? Look at population projections, government expenditure and private investments.
• Quality – Research the developer, architect and builder. Previous work and reputation will give you an indication of what to expect if you’re buying off the plan.
• Amenities – What’s available onsite and in the immediate area? It’s not just what is within those four walls that sells an apartment.

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