Canberra, 8 October 2013 – While the clear result in the Federal Election has provided a greater level of certainty to the Canberra residential market challenges remain according to the latest Australia Residential MarketView report from CBRE.
The report highlights that the outlook for the market remains tied to the extent of the contraction in public sector spending and tips that buyer confidence will remain flat over the medium term despite the low interest rates currently available
CBRE Senior Research Manager Sam Reilly said a particular pain point was expected to be the mid-priced sector of the market between $500,000 and $1 million, where middle management in the public sector was generally the most active.
“Middle management has been targeted as a primary area for upcoming job cuts which has meant caution has been evident from buyers in this price range,” Mr Reilly said.
At the top end of the market, for property priced above $1 million, the report highlights limited turnover, with vendors still discounting to attract buyer interest.
The vacant land market has also been under pressure with new estates in Googong and Traille, just over the border in NSW, offering cheaper land that that available in the ACT.
However the bright spot in the market has been property in Canberra’s lower price brackets.
CBRE Residential Valuations Director Peter Fallon said this sector of the market had experienced better levels of buyer activity with demand having generally been quite strong.
“Low interest rates have been a major factor in the performance of the market in the sub $500,000 range,” Mr Fallon said.
In the unit market, the report highlights that high levels of new supply have led developers to activity seek interest from foreign buyers in the midst of slowing local demand.
For Australian/international news or global stories, follow us on Twitter.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.