The local Canberra housing market has continued to be quite stable, according to the latest Herron Todd White (HTW) residential report.
The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation.
The HTW report notes there are still active market participants, however there are lower sales listings available.
The COVID-19 changes to public auctions did see a quick uptake of online auctions which proved to be quite successful with comparatively good clearance rates.
"The apartment market has continued to experience a long period of strong supply and weakening demand. This has contributed to wider sale price fluctuations," the valuation firm said.
The residential tenancy moratorium on evictions has affected rented properties also listed for sale; investors are approaching with more caution due to the uncertainty of rental income and ending the lease agreement during this time.
In some cases, buyers have requested an extended settlement period to coincide with the end of the tenant’s fixed term lease (e.g. explicit term of the contract is vacant possession, however premises are tenanted, and thus responsibility is on the seller, not the buyer). This has resulted in some extended settlement periods on properties that would have sold within normal settlement periods pre-COVID-19.
A Lazy $700,000
Belconnen is a district located north-west of the Canberra CBD and surrounds Lake Ginninderra. There are a few options for a lazy $700,000, the report noted.
A three bedroom townhouse in Belconnen has recently been sold for $655,000.
The 13/16 Morell Close home (pictured below) comes with lounge room, kitchen and dining area and patio.
It also features evaporative cooling, ducted gas heating and double garage.
In the suburb of Cook, $700,000 would be your entry point for a detached family home.
If you are lucky enough to find one, it would be a circa 1960s three-bedroom, one-bathroom home with mostly dated interior situated on a 650 plus square metre lot.
Cook has continued to experience strong capital growth, which should give potential buyers more confidence.
"True is the old saying - buy the worst house in the best street," the valuation firm said.
A three bedroom house in Cook has recently been sold for $690,000.
Located at 24 Templeton Street (pictured below), the home features RC/AC to living room, lock up garage and workshop,
It is situated close to Jamison Plaza, Belconnen Town Centre and ANU.
In the suburb of Evatt, your dollar will go a lot further, the report noted.
"Typically, you could buy a circa 1970s renovated four-bedroom, two-bathroom detached dwelling situated on an 800 plus square metre lot," the valuation firm said.
Evatt has experienced good capital growth, which is likely to continue in the short to medium term.
Thanks to the ACT Government’s Mr Fluffy Buyback Scheme, there has been an array of brand-new duplex and dual occupancy dwellings built on the remediated blocks within the established suburbs of Belconnen, some priced within the $700,000 price range.
In the suburb of Flynn, you could buy a brand new turnkey, four-bedroom, two-bathroom dual occupancy dwelling with a two-car built in garage, the report noted.
Buyer demand has typically been a mix of first- home buyers, downsizers and investors.
The short- term capital growth has been quite stable, as there continues to be a supply of other newly developed Mr Fluffy blocks available and in the pipeline.
