Advice for keeping/selling POR apartment in Canberra

Hello, I'm new and I hope I've posted in the right forum. I'm hoping to get some input on my current situation.

I live in an apartment in the Molonglo region in Canberra. As many of you know there's an oversupply of apartments and the CG isn't moving much and may even go down. However is it worth holding in the medium term? I plan to move to Melbourne in a year or so.

I bought this small apartment well in mid 2014 off the plan (moved in late 2015) and have 18% growth since then from a conservative estimate. The plan was initially to hold it until the new Molonglo area has developed, ie at least several years.

But given the poor outlook should I consider selling it and finding better elsewhere? I'm pretty confident I can get good yield/positive cashflow esp by renting the rooms separately and managing it myself. Even with flat rents in the near future. OTOH my income is fairly low and I won't be in a position to invest more anytime soon. I do have a cheap IP in Brisbane (recent buy) if it helps to complete the picture.

Thanks so much for any insight!! I'm a newbie to investment strategy too so I'd be grateful for any thoughts on what I should consider too.

 

Also there's a massive gap with average house price being $820k and units being less than half that at $408k... something's gotta give and I'm kind of hoping for a moderate incline maybe..? Or is such a difference normal? Plus it's near the mountains/nature which isn't common for apartments Will that be an advantage on other units or no more special than any other feature?

 

There is a huge oversupply of apartments in Canberra. More are still coming into the market. The tallest apartment building is coming up in Belconnen. Apartment rentals tend to do very well in the Kingston foreshore.. good positive rental return due to huge demand from high income earners in the gov sector.. also the great lifestyle.. however, growth still seem to be quite stagnant.. i know a few people who own in the area.. one is a radiologist who could not sell so moved into it turning it into a ppor...

another friend owned a huge 900sqm house in Page and an apartment in Belco.. bought off the plan.. was told by agent he will lose out 50k if he sell the apartment.. so he opted to sell the house and moved into the apartment... the house would have worth a lot if he would have kept it..

Molonglo valley area is pretty new.... too much bareland in my opinion.. more land release in the future.. and need more development going into the area.. i am not sure about rental return there.. there is no big shopping mall around the area or main bus exchange like woden and belco...

I moved to melb last year after six years in canberra. Bought in melb and they have done very well... cant compare to house growth in canberra region... Recently sold up in Canberra.. the house has done ok but not that type of growth you can see in Melb or Sydney..

anyway, if your servicing is limited... you are prob better off buying in melb, free up your borrowing capacity and also sell when u can still make a profit.. i haven't heard of anyone selling with a decent profit for recent bought apartment units in canberra.