Canberra offers a strong opportunity for investors veering away from the Melbourne and Sydney markets.
With affordable prices and a steadily growing population, Canberra is gaining investor interest. New sleek developments like The Grande on London by developer Geocon could be ideal properties for investors to dip their toes into.
With apartments starting from $544,900*, already over 200 of the 332 homes in the building have sold, with buyers appreciating its central location and modern comforts and conveniences.
“Its location is one of its biggest selling points,” said Simon Chester, Director of Sales and Strategic Partnerships at Geocon.
“It’s right next to the lake and between two world top fifty ranked universities – The Australian National University and the new University of New South Wales campus – currently preparing to commence construction – it’s also right in the heart of the city, so in terms of location, it doesn’t get any better.”
With relatively affordable prices and a steadily growing population, Canberra is gaining investor interest.
Benefits of investing in Canberra
Canberra continues to evolve as its population increases, and investors from Melbourne and Sydney set their sights on alternative locations to allocate their money.
Home prices in Canberra are still lower than in Sydney, but the gap is slowly closing. In June this year, the average house price in Canberra was $976,360 and $517,924 for units, according to Dr Andrew J Wilson’s My Housing Market Report.
Overseas interest is also increasing, with 8,119 people moving to Canberra from overseas in 2023.
“There’s the stability of the Canberra market – with such a large percentage of people working for the federal or local government, which is higher than anywhere else in Australia, it leads to more job security.
Covid really highlighted that when unemployment numbers in Canberra went down, whereas everywhere else went up,” said Mr Chester.
“The other major appeal for investors is Canberra’s proximity to Sydney. The property prices here are a lot more affordable, and it’s easy for buyers to come down and have a look.”
Buying off the plan is also an enticing prospect for investors who can make more return on investment in the future.
“The best time to buy is off the plan,” explained Mr Chester.
“The prices go up, but construction costs also go up, so by the time they come to completion, they’ll generally be worth more than what they were when people bought at the beginning of a project.”
Take a tour of The Grande on London homes in our gallery
Canberra vs. major markets: insights
While Canberra’s home prices continue to grow, they aren’t growing as quickly as other major cities. The ACT had the lowest increase in price across all major cities in the country, with a 0.43% annual growth in home prices in August 2024 compared to a huge 23.24% growth in Perth.
In Hobart, Canberra, and some parts of Melbourne, total listings are more than 30% higher than the average seen over the past five years, reflecting significant choice for buyers.
“This likely indicates that buyers in these markets will hold the upper hand as spring progresses and the number of new properties hitting the market continues to lift through spring,” said Senior PropTrack economist, Eleanor Creagh.
These signs point to a good time for investors to strike the Canberra market, with more choice and the outlook of a return on investment as the value grows.
Canberra continues to evolve as its population increases.
Market trends
Canberra is gaining a trendy reputation thanks to new restaurants, cafes, and arts precincts opening, along with stylish developments like The Grande on London joining the scene.
While Canberra was previously predominantly made up of free-standing houses, an increasing number of apartment buildings within the city have been constructed over the last decade to accommodate more diversified buyers.
“The suburbs that touch the New South Wales border now didn’t exist twenty, thirty years ago. The ability for people to find a block of land to build a house on has changed a lot over the years, impacting prices significantly due to the scarcity of land.
This also means there are a lot more apartments going up now because that’s where the opportunity lies, with very limited land supply,” explained Mr Chester.
Beginning your investment
So far, interest in The Grande has come from a variety of buyers, including downsizers, interstate, and international investors who have noted the development’s close proximity to the local universities and city centre.
Investors are encouraged to do their research before purchasing a home in Canberra by following insights on realestate.com.au and speaking to a mortgage broker who can provide more intel into the local opportunities.
*Subject to availability
Disclaimer: The Grande (‘the Development’) Information, images and plans representing the Development including specifications and inclusions are provided in good faith. Illustrations and images are the designer’s impressions only and are subject to change as required by the Developer. Although great care has been taken to reproduce the inclusions and specifications as accurately as possible, paint and materials colours are affected by many factors. For the most accurate representation ensure a product sample is reviewed. This brochure does not constitute an offer or contract. Purchasers should rely on their own enquiries before entering into any contract for sale. See website for details. Licence no 18401809 V3 January 2024
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