Analyse Canberra's Property Market for Investors

9th April 2019

There has never been a better time to invest in Canberra, which is quickly becoming Australia’s strongest real estate economy. With a growing university sector, new jobs and more than $2.9 billion worth of infrastructure projects on the way, Australia’s national capital is an enticing place to live and work. This presents an exciting opportunity for investors looking for short term, high-yielding properties.

Canberra City in Autumn

Rents are Increasing in Canberra

According to the latest Domain Group data, overall rental rates in Canberra have surpassed Sydney to become the highest in the nation for the first time in 11 years. Limited supply and strong population growth are driving rents up. Many new residents also have high incomes, so there is little downward pressure on this trend.

There is an unprecedented demand for apartments, in particular. The median weekly rent for units in the nation’s capital is $465, compared with $530 in Sydney. However, that reflects an increase of 8.1 per cent in Canberra over the past 12 months while rents have fallen 2.8 per cent in Sydney.

High Rental Yields from Apartments in Canberra

The number of first home buyers and owner-occupiers is increasing in Canberra, putting pressure on rental stock availability. While rents rise, rental yields are also strengthening. Rental yield 6.9 per cent for apartments in Canberra over 2018, making rental yields in Canberra the highest in Australia.

While landlords are faced with higher costs compared to other markets, these expenses can be absorbed through the higher rents and by making smart investments. The apartment market in Canberra has created confidence, with some developers offering a 7 per cent rental yield guarantee over five years for investors in projects currently under development.

What Makes Canberra Unique

Canberra is often compared to Washington DC. Both are unique in that they are planned cities, built to be the capital of their nations outside of any state. Both share a similar culture due to being the major hub for federal government departments and related organisations. However, Canberra is a more affordable city according to the Numbeo cost of living comparison.

Today, Canberra boasts the fastest growing economy and the strongest population growth in Australia. A steady stream of new residents is lured to the city from overseas and interstate by greater job prospects, reputable universities and the growth of the city in general. Meanwhile, contract workers are attracted by the major infrastructure projects.


The Canberra Matrix Offers More Incentives for Investors

Last year, the Australian Capital Territory (ACT) reintroduced its Skilled Migration 190 visa program. Applying for this visa involves completing a score-based ‘Canberra Matrix’ test, which allocates points based on demonstrated economic contribution or benefit, and a commitment to be part of the ACT community.

Non-Australian investors who currently live or want to live in Canberra can benefit from this scheme. Investing in property in Canberra counts as a demonstrated economic contribution and can earn you 5 points in the matrix, so long as the investment is $250 000 or more.

Need Property Investment Tips in Australia?

If you’d like advice on how to invest in property, where to buy investment properties or services relating to buying and managing investment properties in Australia, speak to the experienced team at H&T Realty in Sydney. Countless investors rely on our experienced consultants for property investment strategies and property investment tips. Call us today on 02 8045 5388 or contact us online.