There is more to Canberra than its reputation as Australia's capital and seat of government. Where investments are concerned, this province has them in abundance. Its impressively low unemployment rate, coupled with a stable annual capital growth, buyer-friendly median house price and diverse flora and fauna, makes Canberra one of the best places for buying property down under.
If you have considered investing in the country's capital, but are not sure when or how, we have gathered some facts to help you fast track your decision-making. Here are reasons to invest in a Canberra property and why you should do it soon:
People relocate and settle down from one place to another due to work assignments or the need to access more job opportunities. Fortunately for job seekers and those looking for a fresh start in life, the Australian Capital Territory has a strong labour market as demonstrated by its low unemployment rate. In fact, Canberra has one of the lowest unemployment records in the entire country. The capital is well-supported by the Federal Government, which provides direct and indirect employment solutions to citizens. Recent data from the Australian Bureau of Statistics shows that Canberra's unemployment rate is at 3.8%, just below New South Wales (4.6%).
The local rental market is on the rise. There are more choices and easier investment points of entry than large Australian cities like Sydney and Melbourne. Investors are also more likely to acquire better returns. The capital's estimated rental return rate for flats sits at 5.7 per cent, which is considerably higher than the returns you will possibly get if you invest in Sydney, Adelaide or elsewhere. Unit rental yields are 2% higher in ACT compared to the usual average yield for all houses. A property in Canberra may even fetch a better rental yield than a property in Sydney that is twice the price of the unit you purchased in the capital.
Canberra prides itself for being one of the most progressive capitals in Australia. Based on a recent local government media release, Canberra's economy has, overall, been growing at an impressive rate of 12% in the last three years. Despite the global pandemic, the capital was able to produce 3,200 new businesses and 16,000 new jobs. There is a relatively young population migrating to ACT and working in government. Young professionals will find Canberra one of the best places for start-up investments and long-term careers.
The population has expanded these last six years. ABS recent data shows a healthy population growth rate at 0.2% each year. ACT's total population is set to nearly double in about 40 years' time. Population growth indicates a strong local economy and more opportunities for investors. Paired with a thriving labour force, impressive rental returns and positive economic growth rates, population growth helps drive progress in Canberra.
Finally, one of the more redeeming features of Canberran life is its refined yet budget-friendly lifestyle. The ACT is teeming with vineyards that are just a few minutes drive from the central business district. The capital has several Michelin restaurants and award-winning bars. A comfortable and relaxing atmosphere envelops the city, its suburbs and surrounding areas. The climate is mild compared to other parts of Australia and one can bask in the sun and experience clear weather much of the year.
Are you interested in relocating to or buying investment property in ACT? Ask our team! We know Canberra like the back of our hand, having serviced the area for decades now. Let us know your property requirements, budget and preferences. We can connect you to the right people as well as guide you throughout the property purchasing process.
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