The investment property in Canberra is becoming increasingly appealing to Australian property investors. This transformation is driven by record-low interest rates, a strong local economy, positive affordability, and relatively high investment returns.
If the nation’s capital is on your radar, here are our seven great reasons to invest in Canberra.
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1. Affordable Property Prices
Canberra has a large number of comfortable homes with good design, high energy efficiency and convenient access to the CBD. In fact, ACT is one of the most affordable places to live in Australia when considering the housing price to income ratio. According to the latest CoreLogic report, the median price for an apartment in Canberra is $538,071, compared to Sydney of $824,860 and of Melbourne of $619,443.
2. Popularity Growth
The ACT is projected to grow annually by an average of 1.5% between now and 2041, well above the national average. The ACT Government is investing $3 billion in physical and digital infrastructure in the ACT over the next four years and planned funding to support existing and future employment, which has attracted a huge number of people joining this community.
3. Healthy 0.9% Vacancy Rate
According to SQM Research, Canberra has a low rental vacancy rate of 0.9%, which means there is an extremely high demand for renting in the area, a sure sign for investors looking at making their next property purchase.
4. Australia’s #1 University City
Canberra is home to 6 universities that educate over 64K students from around the world. Both the University of Canberra and Australian National University are ranked in the top 10 across Australia. ANU is #1 in Australia and ranked 29th in the world.
5. Educated Workforce
While many students choose to study in Canberra because of the high quality of education and comfortable lifestyle, they are staying to work. As a result, the employment growth has been strong in ACT and over the next 25 years, the number of jobs in the area is forecast to increase by one-third.
6. International City
In 2019 the Canberra International Airport serviced around 84,400 international passengers. The numbers speak for themselves. Canberra is growing up fast, as it continues to evolve into a vibrant and internationally renowned city.
7. Permanent Residency
Canberra is the only regional area that allocates points towards permanent residency. Owning a property over $250k is worth 5 points in the Canberra Matrix & additionally, the minimum taxable income for 491 visa holders is currently $53,900 pa, which means purchasing a property to assist with meeting the requirements is a good option for the applicants.
At St Trinity, our mission is to assist all buyers on their property journey in finding a suitable investment property in Canberra for their lifestyle and needs. If you are considering buying an investment property, it’s time to explore the opportunities Canberra has to offer!
Which suburb is best for investment property in Canberra?
Our top 5 recommended suburbs for investment in Canberra are:
1. Gungahlin: A sought-after suburb known for its proximity to the city centre, natural surroundings, and new housing options.
2. Canberra Centre – At the Heart of It All: Located in the bustling city centre, offering access to diverse amenities and a vibrant lifestyle.
3. Woden Valley – Undergoing Regeneration: Woden, just a 10-minute drive from the city centre, is experiencing redevelopment and offers a mix of properties and green spaces, making it an attractive investment choice.
What is the minimum deposit for an investment property in Canberra?
Are there any available government grants to buy investment property in Canberra?
In Canberra, there are various government incentives and grants available for property buyers; however, it’s essential to note that these are typically designed to assist first-home buyers or owner-occupiers. There may be specific grants or incentives for investors in the form of tax benefits, but these are typically at the federal level rather than specific to Canberra. It’s advisable to research with government resources to explore any potential benefits for investment property buyers or contact us now to receive personalised advice.