Canberra, Australia
Canberra, AUstralia
Supply & Demand
It is one of the key drivers of growth in any market sector and the natural launch-pad for our Canberra review.
At present the nationwide vacancy rate stands at 1.9% which in itself is incredibly low, however, Canberra found itself with just 486 properties available for rent in April, a staggering vacancy rate of just 0.7%.
If the demand is high and the supply is low then the trajectory of the rental income will only be heading in one direction.
RENTS
House rents have seen near double-digit increases over the past 12-months, with 9.2% growth, whilst apartments have also gained 5.8% over the same period.
Signs of slowing down are not on the horizon as just last month house rents increased by 4.5% with demand from domestic migrants moving to work in Government departments increasing the competition in the market.
All of this paints a very healthy picture for any investor looking to enter the market with apartment rents offering a solid 6% yield, whilst houses deliver in the low 4%’s – both unleveraged.
Foreign Investor Friendly
Whilst Sydney, Melbourne and even Brisbane have performed admirably for investors, they have also witnessed an increase in acquisition costs, with a Stamp-Duty surcharge for foreign investors.
With 8% added to purchase costs in VIC (Melbourne) and NSW (Sydney), 7% for QLD (Brisbane), Canberra and the ACT once again stand-out as having added 0% to their Stamp Duty tax for overseas investors.