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Canberra set for greater growth in years to come

By Ben Faulks

While everybody has been concentrating on Sydney and Melbourne over the last few years when it comes to property value increases, they seem to have forgotten that a world exists outside of these darlings of the property industry!

These two cities have certainly been seeing some strong growth, but the tide, the wind and the tables all seem to be turning at once, putting those cities that used to be thought of as "underperformers" right back at the top of the list.

And yes, that includes Canberra!

A paradigm shift

Don't just take our word for it: industry experts CoreLogic RP Data and Moody's Analytics both agree on the likelihood of a slowing Australia property market over the next couple of years. However, CoreLogic has one addendum:

"The trend in home value growth is showing signs of increasing in those markets that have previously underperformed. These include Brisbane, Adelaide, Hobart and Canberra," said CoreLogic head of research Tim Lawless.

"Affordability constraints aren't as apparent in these cities and rental yields haven't been compressed to the same extent as what they have in Melbourne or Sydney."

Why does CoreLogic have such faith in the Canberran market? While the 4.5 per cent year-on-year median value growth has been lower than the impressive returns of 9.5 per cent seen in Sydney, more recent statistics tell another story: Canberra saw a 1.5 per cent median value growth in the last quarter while Sydney actually fell by 0.2 per cent.

Further, Canberra still remains affordable for new buyers, with the greatest proportion of the city's properties existing within the $400,000 to $600,000 bracket. This presents excellent opportunities for investment in mid-priced properties that can fully take advantage of the recent against-the-grain gains.

For more information on how you can invest in Canberra through prime Belconnen real estate, talk to the local property experts at Ray White Belconnen today!

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