State of Markets - ACT August 2012

State of Markets - ACT August 2012

By Staff Reporter

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


Fast figures

  • $540,000: Median house price in Canberra (RP Data)
  • $1,554.50: Canberra adults’ average weekly earnings, the highest in Australia (Australian Bureau of Statistics)
  • 0.9%: Vacancy rate in Canberra (SQM Research)

Lease Variation Charge bad for affordability

The ACT’s Lease Variation Charge (LVC) will have a negative impact on housing affordability and the ACT economy in general, according to an independent report.

The report, commissioned by the Property Council, found that in the year since the LVC’s introduction, the number of planning applications for multi-dwelling properties declined.

The LVC applies when a property is altered or converted into one that is more profitable.

Property Council ACT executive director Catherine Carter said the charge would have a detrimental effect for property owners.

“The increased Lease Variation Charge won’t affect developers’ profits, because the financiers won’t allow this to happen,” Ms Carter said. “The result is that where Lease Variation Charges are higher, the amount a developer can pay the landowner goes down. So, existing property owners are in fact the losers.”

$39m defence housing on the cards

A planned $39 million combined defence and private housing development in WestonWeston, NSW Weston, ACT would bring new infrastructure to the area, including new roads, drainage, sewers and telecommunication.

Federal Member for Canberra Gai Brodtmann said the proposed development was another example of the federal government’s investment in Canberra and it would open up opportunities for the Molonglo area.

The planned development includes 73 single-dwelling lots, 50 to be used by the Department of Defence, and three multi-unit sites with an expected 47 dwellings.

Its cost would be offset by selling individual dwellings to the investor market through a sale and lease-back program.

Work on the site is expected to begin in January 2013, with completion by December 2014.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%
State of Markets - ACT August 2012
SPI logo