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Why You Need To Talk To A Canberra Real Estate Agent Today

Canberra’s property market tends to be one of Australia’s unsung heroes and it performed extremely well in 2021.

If you’re considering investing in a property in Canberra or you’re looking to sell one, you should talk to a solid Canberra Real Estate Agent to maximize your gains in 2022.

Let’s take a look at why that should be.

What Happened With Canberra’s Property Market In 2021?

Canberra has done well in 2021 and the average price jump for homes in the city has been nearly 25% (roughly 7% a quarter) according to the Domain House Price Report.

That means Canberra had its best year in nearly 30 years and median house prices in the more desirable areas have now exceeded the seven-figure line.

It might have been even more extreme for Canberra’s house price growth, but the recent development boom helped to keep the lid on things.

It’s also worth noting that the pandemic seems to have had a positive impact on Canberra’s house prices too, driving them ever higher.

About The Canberra Property Market For 2022 And Beyond

So, will things continue in that direction for 2022? That’s a good question and there are a couple of reasons to believe that house prices aren’t going to keep racing up forever and they are:

  • Affordability is a hard limit on house prices. Wages just aren’t keeping pace with house price inflation and that means sooner or later, the average Australian won’t have the capital to invest in a new home.
  • There may be fewer buyers around. We don’t know if this will hit in 2022, in fact, it’s possible that some buyers put off their move because of Covid and will be rushing out to get things done in 2022 but it’s fair to say that at some time in the near future, the demand for homes is going to tail off a little.

Even if both these factors come into play, they’re not likely to affect the first half of 2022 too much, and if you want to hedge against them in later parts of the year?

Then you might want to think about investing in mid-tier to high-tier areas of cities.

Affordability constraints are less likely to be an issue in areas where the house prices are way above the average.

Working out which areas are going to offer the biggest house rises is something best done in conjunction with a Canberra Real Estate Agent as they will know the lay of the land and be able to track changing trends in purchasing/selling behavior for you.

You should also consider, what the industry is fast coming to know as, “pandemic appeal.”

That is a good location is one with the facilities you need to buy food, take care of your basic needs, etc. on the doorstep or, at least, within a short walking distance.

What Do The Banks Say About 2022’s Property Market?

The banks are predicting a growth market in 2022, though they are more cautious about the size of growth than in 2021.

On average, the banks are predicting growth of around 5-6% in the city and that’s a healthy rate of return for most investors.

Investors may, however, need to hunt around for the right mortgage provider as rising interest rates mean that banks will be re-assessing their risk profiles and looking at whether you can afford repayments if a larger rate hike occurs.

Working with a good quality Canberra real estate agent can be a great way to identify the most favorable forms of finance too.

Is There A Risk Of A Canberra Property Market Crash in 2022?

It’s impossible to say, “there’s no risk at all”.

After all, Canberra could be struck by a meteorite or Australia could, no matter how unlikely it seems, be drawn into some sort of regional or global conflict.

It is fair to say that no such risk is evident and that the market seems set to slow down a little but not to “crash” or come to a halt.

The only note of caution is in the sections of the market aimed at low-income earners where recent house price inflation, wage constraints, and rising interest rates may come together to slow the market.

It’s unlike that you’d expect to see any such impact on middle and higher-tier property prices.

Royce Kaur of RK Property Partners in Canberra says, “This is going to be a good year for investors as opposed to first-time home buyers. Though growth may be a bit slower than last year, there’s going to be a lot of competition from investors to take advantage of currently low-interest rates.”

The Best Canberra Suburbs To Invest In

Royce also offered her current pick of some of the best Canberra suburbs to invest in:

Gungahlin

“Gunners” as they call it here in Canberra is a growing region that has new modern properties and a very useful light rail connection.

There are strong plans for further expansion and the anticipated growth rate in 2022 for house prices is over 6%!

Belconnen

This is a great area for an investor looking to get started with affordable properties in Canberra. It’s one of the best places in the city to raise a family.

It is also one of the most affordable regions of the city and there are plans afoot for further mixed-use development.

“Belco” is home to GIO Stadium and the University of Canberra and its popularity as a residential area seems certain for decades to come.

Harrison

The big deal with Harrison is that it’s got a solid median rental yield and investors who want to start seeing profits as fast as possible are going to like that, and its reasonable median house price.

They may not be as keen on the vacancy rate, however, which is coming up for 0.7%.

Curtin

House prices are in the 7-figure range in Curtin but it’s an area that’s seen huge growth in 2021 and is expected to deliver excellent growth over the next 10 years (averaging nearly 5% year-on-year) and that’s good enough to offset lower media rental returns.

Florey

Florey saw solid growth in 2021 and we’d expect to see similar growth in 2022. Over 10 years, it won’t keep pace with Curtin but should provide a solid 4% year-on-year return. The median rental yields are decent at around 4.1% too.

Dickson

If you’re looking for a cheaper area which appeals to young buyers then Dickson might be the way to go with solid rent yields and decent annual appreciation.

With units available from $500,000 Dickson can be a good way to get on the investment property ladder.

Other suburbs to watch include Woden, Queanbeyan, Kaleen, Throsby, Bruce, Paige, Scullin, and Campbell.

Why Do I Need A Canberra Real Estate Agent?

It’s always tempting to think you can get a better deal without using an agent but if you’re selling a property, an agent is likely to get the highest possible price for it – after all, they have an incentive to do so because they work on a commission basis.

And if you’re buying a property, an agent can help you avoid making costly mistakes and guide you to the more profitable areas of the city.

They’ll be aware of new developments such as light rail or government interventions that open up new opportunities for you too.

They may also be able to help you find the best value financing which accommodates any specific needs that you have.

All of this can add up to a lot of saved time and time, as they say, is money.

That means if you’re looking to take advantage of Canberra’s highly performing property market in 2022, you want to deal with a reliable Canberra Real Estate Agent.

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