Essential information, plus expert insight on what is shaping the national property market...
AUSTRALIAN CAPITAL TERRITORY
- 0.9%: vacancy rate in Canberra (SQM Research)
- $532,750: median house price (RP Data)
- $2,123: median monthly mortgage repayments in Canberra (2011 Census)
Canberra seen as a long-term winner
The Canberra property market, while frequently avoided by investors, is an “investment winner” right now, according to one leading residential and commercial property firm.
For investors who are looking for a solid, long-term investment area, Canberra is a definite hotspot, Colliers International’s state chief executive, Paul Powderly, said. “The ACT has consistently proven itself to be a long-term investment winner,” Mr Powderly said. “While short-term capital growth might occasionally be stronger [elsewhere], you cannot beat Canberra for a solid, long-term investment.
“As most investors are looking for opportunities that provide them with a steady income over 10 to 20 years, then they should be looking at the ACT.”
Real Estate Institute of Australia figures show Canberra has the highest annual yield nationwide for properties in the two bedroom apartment category.
Significant tax cuts ahead across Territory
Government taxation reforms will result in lower stamp duty rates for more than 97 per cent of properties across the ACT, according to new figures.
The 2012/2013 Budget for the Territory includes the first phase of a five-year plan to abolish stamp duty, with rates set to fall.
The first cut occurred in June and further cuts will see a $300,000 property saving more than $4,000 in 2016. Properties valued at $400,000 and $500,000 will see savings of $5,540 and $7,000 respectively by 2016.
Taxes up for reform also include land tax, which will see reductions for medium and low-priced properties, as well as the abolition of commercial land tax and tax on insurance premiums.