Global Power | Local Knowledge | Uniquely Personal
中文

Majority of homeowners in Canbe...

Majority of homeowners in Canberra are investors

It seems that the majority of people who have bought houses in the Canberra suburbs have done so for investment purposes, rather than buying them as a home.

Further to this, more than 90 per cent of the private residences in the city's suburbs are owned by investors, according to figures from CoreLogic.

In particular the City and Acton postcode has the fourth highest concentration of investor-owned apartments in the whole of Australia.

Throughout the country, it would appear that 2.6 million Australian homes are owned by investors, which is stated in CoreLogic's Profile of the Australian Residential Property Investor.

Head of research at CoreLogic Tim Lawless said that he has noticed broad patterns emerging from this paper, such as dominant investor activity around strong rental market areas.

These are usually inner-city locations and often are close to hospitals and universities, which he says is interesting.

In contrast, Craig Bright, a spokesperson from the Real Estate Institute ACT, believes that the figures are due to an influx of young professionals and contractors.

The figures from CoreLogic also highlighted that people are more interested in investing their money in apartments rather than houses in Canberra, particularly in the 2612 postcode area. In fact, this area has the highest amount of investors, coming in at 22.6 per cent.

In other areas, including Queensland and Victoria, it's a 50/50 split between investors and private citizens who own the houses in their city suburbs.

Mr Bright stated: "Canberra is attractive to investors, as it has fairly steady growth, rather than a boom-and-bust cycle."

He added that there has been a particular surge in Canberra due to the decline in investor interest in Sydney.

This is largely due to the fact that apartment prices are much lower than in Sydney, which makes the margin for profit from renting out or selling on properties much higher.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

Subscribe Now