Long before the global pandemic, Canberra's real estate market was a very stable market but still had its minor ups and downs. Despite the volatility of the last two years, first home buyers, seasoned house hunters and property investors still have much to look forward to. A positive atmosphere is in the air. However, stakeholders are advised to proceed with caution, weigh the pros and cons, and, where possible, seek expert guidance before making their move.
Below we share three good things to anticipate and one thing to be cautious of this third quarter of 2022 onward:
Though the past two years greatly affected the real estate market, economist Angus Moore from the REA Group says investors have been gradually returning. A first homebuyers market took over when the pandemic struck. This dynamic is about to change with investors becoming more active, ushering in a busy period of developments, buy-and-sell, off market dealings and sold out Canberra investment property auctions. Some investors have learned to navigate the new normal and are making the most out of their strategic capital.
Buyer outlook has come a long way from 2020. The existence of vaccines and other types of safety measures, in addition to obvious signs of recovery and activity, have restored buyer confidence in the local real estate market. Property listings are growing and so are the number of active homebuyers. As more and more investors pour their capital into Canberra, a buyers' market has emerged in the process. After the pandemic slump, buyers are setting their sights on homes with competitive prices.
Though positive sentiments are influenced by economic issues, market volatility or pandemic regulations (e.g. lockdowns), history and recorded patterns suggest that buyer confidence can easily bounce back. Increased economic activities, listings and mortgage opportunities lure buyers to pursue real estate plans that were put on hold at the height of lockdowns.
In a bid to reduce the impact of harmful homebuilding practices, a group of Canberrans are establishing a sustainable housing community up north. They hope to downsize and instill environment-friendly values through the Stellulata Cohousing. An ABC News report calls it a "small cohousing project," soon to be built along the suburbs of Ainslie. The plan was to construct a building for people who want to retire or downsize their living quarters. It may look like a single house if viewed from the street, but this building actually consists of three one-story units, sharing the same structure.
Stellulata Cohousing will be equipped with solar panels and batteries, eco-friendly appliances, and mechanisms for harvesting rain and converting it into an energy source. The design is based on an existing cohousing project initiated by the ACT government, known as the Demonstration Housing Project. Its goal, according to the government website, is to "test innovative forms of housing" to meet the "emerging needs" of Canberrans.
While it is true that Canberra's property landscape has recovered some of its lost energy, problems still remain that stakeholders, especially homebuyers and investors, should keenly pay attention to. One such problem is ever increasing interest rates. In some parts of Australia, based on reports by Sky News, property prices have crashed to more than 20 per cent. Others rose by approximately the same amount. Prices have been volatile over the last few months, but experts believe there is a silver lining to this situation.
For more Canberra property news, tips and insights, explore our blog today and read our latest articles. You can also get in touch with our independent buyers agents if you need expert guidance for serious real estate concerns, including property purchasing and investments.