{"id":7791,"date":"2016-04-29T01:00:06","date_gmt":"2016-04-28T15:00:06","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=7791"},"modified":"2016-04-29T01:00:06","modified_gmt":"2016-04-28T15:00:06","slug":"consumer-sentiment-improves-in-act","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/consumer-sentiment-improves-in-act\/","title":{"rendered":"Consumer sentiment improves in ACT"},"content":{"rendered":"

 
\nKate Forbes<\/strong> helps us understand why the ACT market has underperformed in recent years but she points out there are some signs of improvement but that with a looming Federal election, consumer sentiment will again play a roll in what happens there.
\nTranscript:<\/strong>
\nKevin:<\/b>\u00a0 As we continue our look around Australia, this time we\u2019re going to turn the focus on the Australian Capital Territory, Canberra, and that region down there. Although quite small, it relies a lot on what\u2019s happening with politics. To bring us up to date on that and look at some of the opportunities and maybe some of the areas you should avoid, Kate Forbes, who is a Property Strategist, works with Metropole out of their Melbourne office.
\nKate, thank you very much for your time.
\nKate:<\/b>\u00a0 It\u2019s a pleasure, Kevin. Thanks for having me on the show.
\nKevin<\/b>:\u00a0 I\u2019m going to take you out of your comfort zone just a little bit, because I know that you\u2019re very much focused on the Victorian market, but from time to time, no doubt you have to answer questions about other areas. Just give me an overview, if you could, of the ACT. How do you see that market?
\nKate<\/b>:\u00a0 Certainly, Kevin. ACT over the last couple of years has seen lackluster performance, particularly when compared to what you could have achieved in some of the other states. Over the last 12 months, Canberra has delivered just 1.7% change in dwelling prices, which puts it third last behind Perth and Darwin when tracking the performance of the eight capital cities. Over the last 10 years, the picture isn\u2019t very different, with Canberra delivering just 3.7% annual capital growth, and that puts it fifth in the race.
\nIf you have a look at real property prices \u2013 which is prices adjusted for inflation \u2013 in Canberra, they\u2019re only 3.5% above the previous peak, which was reached in December 2010. It clearly has a lot of catching up to do, but conditions do seem to be slowly improving.
\nKevin<\/b>:\u00a0 I\u2019m wondering about that, because Canberra is one of those markets that maybe will never really ever grow to any great dominance because it\u2019s so reliant on politics. To me, it seems like a destination market, Kate, where you would decide to live there because you\u2019re going to be involved in some form of government, but it\u2019s probably not a great investor market. Is that a fair comment?
\nKate<\/b>:\u00a0 We would certainly say so. In terms of what we focus on in trying to search for consistent performance, we\u2019re looking for a breadth of economic pillars underpinning the market, and as you know and as you\u2019ve correctly said, it\u2019s a one-industry town essentially and it is driven by government.
\nIt\u2019s been a turbulent year politically already. We still have an election looming there, so there is heightened uncertainty, and uncertainty isn\u2019t great for investments and weighs on the property markets ahead despite signs of some improving sentiment in there.
\nKevin<\/b>:\u00a0 Anyone looking at the ACT market \u2013 let\u2019s say Canberra because it\u2019s predominately what it is \u2013 are there any areas you think we should avoid?
\nKate<\/b>:\u00a0 The inner city apartment market. It\u2019s actually much the same story as you\u2019re going to be seeing in Brisbane, Sydney, and Melbourne. In the inner city, apartments have been over-built. Rents have consequentially suffered, and units have actually declined in value over the last year. So we\u2019d certainly be suggesting to avoid the CBD and units in that sector.
\nKevin<\/b>:\u00a0 What are the challenges facing home buyers and investors right now in that market that you can see?
\nKate<\/b>:\u00a0 It does come back to that uncertainty and it being a single-industry town. Whenever you do have uncertainty, it erodes investor confidence and encourages a lot of fence-sitting. Until there is greater certainty on that side and it starts to feed through into confidence and jobs and wage growth, performance is going to continue to be lackluster.
\nKevin<\/b>:\u00a0 Are there any infrastructure-type developments that are going to be occurring in that area, apart from maybe a change of government or a government getting back in, that you see will have an impact on the market, Kate?
\nKate<\/b>:\u00a0 Yes. There is a new $600 million ANU-CSIRO Canberra Science and Innovation precinct, and there is also the Majura Parkway upgrade, which is forecast for $288 million. On the drawing board, there is the Capital Metro light rail network project, which is going to be close to $800 million.
\nKevin<\/b>:\u00a0 These things, of course, always help a lot with employment, and employment outside of the political sector is probably not a bad thing. Best buying in the area \u2013 best buying areas and what do we get for our dollar in Canberra?
\nKate<\/b>:\u00a0 Again, as you would see in Brisbane, Sydney, and Melbourne \u2013 which are perhaps, we feel, better investment destinations \u2013 we\u2019d be focusing on your inner- to middle-ring established suburbs \u2013 those that have an affluence. In Canberra, residents generally are quite affluent, with most households being double income. But those suburbs that have a consistency of track record and a greater breadth of demand are going to be the ones to focus on for the long term.
\nKevin<\/b>:\u00a0 Kate Forbes, thank you so much for your time. Kate is a property strategist, works with Metropole out of the Melbourne office, and that\u2019s the overview on the ACT.
\nKate, thank you so much for your time.
\nKate:<\/b>\u00a0 Pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

  Kate Forbes helps us understand why the ACT market has underperformed in recent years but she points out there are some signs of improvement but that with a looming Federal election, consumer sentiment will again play a roll in what happens there. Transcript: Kevin:\u00a0…<\/p>\n","protected":false},"author":176692471,"featured_media":1175,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,11,13,22,27],"tags":[103],"class_list":["post-7791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-research-topic","category-trends-topic","tag-podcasts"],"yoast_head":"\nConsumer sentiment improves in ACT - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/consumer-sentiment-improves-in-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consumer sentiment improves in ACT - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  Kate Forbes helps us understand why the ACT market has underperformed in recent years but she points out there are some signs of improvement but that with a looming Federal election, consumer sentiment will again play a roll in what happens there. 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