State of Markets – ACT December 2011

By Phillip Tarrant 01 December 2011 | 1 minute read

Essential information, plus expert insight on what is shaping the national property market...


Fast Figures

  • $600,000 – median unit price in Barton, ACT
  • 4.86% – average gross rental yield for Canberra houses
  • 10.93% - average annual growth for Canberra units

Canberra records lowest vacancy rate
The slump in buyer confidence helped keep the national vacancy rate at record low levels in September, with Canberra recording the lowest rate in the state capitals, SQM Research has found.

Canberra recorded the nation’s tightest rental market at 0.7 per cent.

The national vacancy rate has hovered around the 1.8 to 1.9 per cent level for several months, possibly an indirect result of lack of buyer interest in the housing sales market, according to SQM Research’s Louis Christopher.

“Vacancy rates nationwide have been in a fixed range for a long time now and I do not anticipate a move one way or the other for the foreseeable future,” Mr Christopher said.

In September, total vacancies rose 0.1 per cent to a total 48,179 vacancies nationally.

Sydney's vacancy rate remained steady in September, at 1.4 per cent; Brisbane edged 0.1 per cent higher on-month to two per cent; Adelaide rose 0.1 per cent to 1.7 per cent; PerthPerth, TAS Perth, WA fell 0.1 per cent from August to 0.9 per cent; Hobart rose 0.2 per cent to 2.1 per cent; and Darwin remained steady at 0.9 per cent.

SQM calculates vacancies based on online rental listings advertised for three weeks or more, compared with the total number of established rental properties.

Rental price gap narrows in capital
Advertised rents for Canberra’s units and houses are getting closer as renters opt for lifestyle over land, according to Australian Property Monitors (APM).

APM statistics show the gap between median asking rents for houses and units has fallen to $35, with median weekly rents of $465 and $430 respectively.

Increased rental prices indicate increased demand from discontented first home buyers entering the rental market in search of affordable accommodation, APM senior economist Andrew Wilson said.

“Overall demand for units, for both lifestyle and affordability reasons, continues to be greater than the demand for more expensive and generally outer suburban houses,'' he said.

About the author

Phillip Tarrant

Phillip Tarrant

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for... Read more

State of Markets – ACT December 2011
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