ACT Canberra Property 2018

I would suggest that because of the oversupply of units in Canberra at present and in the pipeline over the next 2-3 years, in addition to the property being negative cashflow at 80%LVR (assumed 250k) that demand for the deal would be low.

 

Some more really positive results in Belconnen over the last few weeks although the first two are quite bigger than average:

21 Mellor Circuit, Florey, ACT 2615 - Property Details 870k
9 Hamblin Place, Florey, ACT 2615 - Property Details 840k
23 Etheridge Street, Page, ACT 2614 - Property Details 672k

 

The Greens are at it again.
Greens call for 12-weeks notice for renters on periodic tenancies | The RiotACT

 

Stage 2 light rail update is here:
https://www.transport.act.gov.au/__data/assets/pdf_file/0003/1212636/Light-Rail-Update-June-2018.pdf

Timeframe looks to be 2023/24 completion to woden.

Judging from that id say 2030 until belconnen mall to airport

 

That is the June update. Things sounding a bit more rocky lately...

https://www.canberratimes.com.au/po...rced-to-use-kings-avenue-20180820-p4zykf.html

 

In relation to the Canberra apartment market, the decline has already started I believe. Was looking at a few developments by Geocon in Gungahlin over the weekend, and they were offering $25k discount for all purchases. When talking about the developments happening in Belconnen, they were offering 5% off (in the form of the initial deposit), plus $25k as reduction at settlement. They really want people to take those apartments off them with $0 down payment.

This should be a reflection of lack of buyers for the huge pipeline of apartments in the works in Canberra.

 

This sold for 780k in Florey over the weekend: 7 Nanson Place, Florey ACT 2615 - House for Sale

 

Seems like a good ~150-200k gap between 3 vs 4 br houses in Florey atm...

 

Geocon doing further discounting...

https://www.canberratimes.com.au/na...posits-as-presence-grows-20180926-p5063l.html

 

Lmao such spin - "the apartment market is booming." Yeah sure it is

 

Nailed it .... how nice of Geocon to just hand profits back to poor first home buyers. That shows real character there helping out like that

 

haha funny article

""The apartment market in Canberra at the moment is booming, and when we’re in booming markets we tend to get a lot more competition to buy apartments and a lot more investors that are interested."

yeh cause land tax and strata are pretty low here, and there is an under supply of apartments ..(sarcasm)

 

Maybe Geocon have more units coming down the pipe line to be built and they need to get these sold quick smart?

I am wondering how our Rental reforms in Canberra will unfold after the changes down in Victoria. As we have Labor/Green government also I am worried about...

If the tenant is on a fixed-term lease agreement, they will only be able to be evicted using an end-of-fixed-term notice to vacate at the end of the first fixed term.

 

Yes booming so strongly that we are giving 5% discounts

 

The last time the apartment market in Canberra was booming was over a decade ago. It was a golden era where investors were exchanging on deposit bonds and on-selling at higher prices shortly after.

Cheers

Jamie

 

End of the year it looks like kicking off in Canberra the rental reforms.

Attorney-General amd Minister for Regulatory Services Gordon Ramsay is due to introduce amendments to the Residential Tenancies Act (1997) by the end of the year and the Greens are also calling for reform

Community alliance to launch campaign for changes to tenancy laws | The RiotACT

https://www.makerentingfaircbr.org.au/

 

Some good suggestions, some over the top. Hopefully they don't go too crazy with them all. Canberra is already driving away investment interest, I imagine this would not help.

I find the idea that renters could do pets regardless of owners desires pretty crazy.

 

This worries me the most.

Change 1: An end to “no cause” lease termination
Modernise Residential Tenancies Act (RTA) to remove “no cause” termination for landlords. Landlords must give a reason to terminate a lease. The RTA should provide for just-cause termination only

I wonder who will pay this extra cash the unions are after.

Change 25: Increase funding for Tenant’s Union to expand their function as a renter’s advocate
Increase funding for Tenant’s Union to enable them to expand existing services, and act as ‘Renter’s Advocate’.

 

I can only think of this

Cheers,
Oracle.

 

Canberra houses up 1.2% in the quarter leading all capitals. Units stopped falling this quarter at 0.0% change, but still -1.4% YTD. Further stories of shoddy construction in apartments as well in the CT.

I think most Canberra watchers on here recognise the two speed nature of Canberra property. It would appear this is only going to continue in the future. I can't see apartments beating inflation for a long, long time.