Demand for new land releases within Canberra and Googong remains steady despite economic uncertainty, a report has found.
The Colliers International Canberra Communities Research and Forecast Report – Second Half 2012 has revealed that the fundamentals driving Canberra’s housing market have remained favourable.
1,086 lot transactions have occurred over the past six months, increasing by five per cent.
Over the last six months a total of 527 new lots were released in Coombs, Jacka Stage 1 and Casey 4 and 89 per cent of the stock sold out. This combined with further releases at Crace, Ngunnawal and Googong meant the market has adequate supply for any future demand.
Paul Powderly, state chief executive at Colliers International said there are five major contributing factors that saw such a high proportion of lots selling in this period.
• Population growth
• The nation's second lowest unemployment rate at 3.7 per cent
• The highest average weekly earnings in Australia
• The ACT Government offering land rent in Government estates
• Delays in getting land in the pipeline on the ground.
Ariel Pollard, Director of Research at Colliers International said demand for the 350sq m to 450sq m lots has doubled between 2005 and 2011 to 22 per cent.
“This is attributed to the rising cost of housing driving buyers to more affordable purchasing options," she said.
Ms Pollard said supply levels in early 2012 were not meeting demand but as the pipeline is developed the increased supply will ease prices.