Inner-city owner occupier will dominate the Canberra residential market in 2018
Market trend shifts towards inner city investments for live in buyers
Canberra, 23 November 2017 – The Canberra residential market is geared to achieve market equilibrium, as investors dig in their heels and owner occupiers emerge as the primary buyer next year, per the Colliers International 2018 Residential Outlook.
According to Colliers, potential over supply and probable lack of demand due to accumulative strengthening across all property sectors within the last three years will force the market to a standstill, encouraging a shift from investors to owner occupiers making purchases.
“Buyers are still active especially interstate investors as Canberra’s unit prices and rental returns are extremely attractive compared to the Sydney, Melbourne and Brisbane markets,” said Derek Whitcombe, Director of Project Marketing at Colliers International Canberra.
“In Canberra, we have seen developers overload the lower priced one bedroom market to meet the hungry investors looking for 5% plus rental returns - however recent trends in 2017 have seen some investors buy larger two and three bedroom apartments as these will be attractive to live in buyers when it comes to resale down the track,”
“The diversity of home types in Canberra have become quite significant in recent years however for 2018 the residential outlook points positively towards the inner areas as committed buyers will have the opportunity to invest their money safely in protected markets – inner city apartment and townhouse living,” Mr Whitcombe said.
Mr Whitcombe also notes that buyers in today’s market are becoming more discerning as their options have increased.
“Today’s savvy and informed live in buyers are certainly looking for more than the usual deal such as high-end quality inclusions and will not accept poor quality construction, lack lustre fit outs nor the tardiness in attending to defects upon occupation,” he said.