Townhouse shortage in Canberra sparks high buyer demand

There’s no doubt the Canberra residential market is bubbling along nicely, particularly for sellers and buyers in the detached family home segment.

Outside of the dream suburban four x two, however, the squeeze is definitely on for those looking for something that isn’t a house or an apartment.

Chris Wilson, of Cream Residential, says the biggest gap in the Canberra market is the limited supply of townhouses.

“There just isn’t the financial incentive for builders and on top of that there’s a whole range of government charges and zoning that further erode the viability of creating more of this type of stock,” he says.

“The irony is that there is no shortage of demand for townhouses. There are plenty of potential buyers who are looking to downsize into the communities they have lived in – but there’s nothing for them to buy into.”

Wilson says older townhouse stock is sometimes available. Dated presentation deters some buyers or requires a hefty renovation budget.

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Tony Trpeski, of Peter Blackshaw City & Inner North, says there is a huge demand for dwellings that offer single-level living on smaller blocks.

“I had a buyer recently who wanted a dual occupancy with just a 90-square-metre home on it,” he says.

“That kind of product just doesn’t exist unless you create it yourself.”

Trpeski says many builders have become accustomed to fulfilling demand with a certain type of dwelling.

“I think there’s an appetite from potential buyers to see something different,” he says.

MISSING IN ACTION

• Townhouses. There’s huge demand for townhouse stock throughout Canberra. Downsizers often want to retire into the same communities they have raised their families in. Builders are often deterred by the cost equation.
• Single level. Many types of buyers are keen to enjoy single level, low-maintenance living on much smaller blocks, particularly in the inner-city environs – but options are far and few between.
• Fresh thinking. Have we become too used to a certain design template for apartments, townhouses and home design? Are there opportunities to think differently about the forms of dwelling we live in?