Affordability across Australia has declined, according to the latest Housing Affordability Report released by the Real Estate Institute of Australia (REIA) and Adelaide Bank. Despite this, for those looking to buy, rent or invest in property in Canberra, the news isn't all bad: the capital is among the most affordable of Australian cities.
Canberra has certainly not been immune to the decrease in affordability, both in mortgage repayments and rent. REIA and Adelaide Bank's Housing Affordability Report found that the average home loan size in Canberra increased by 2.5 per cent between December 2015 and December 2016. Tenants in Canberra also spent on average 0.8 percentage points more on rent in the December 2016 quarter, compared to the December 2015 quarter.
"Over the December quarter, affordability worsened in all states, with New South Wales the least affordable," Real Estate Institute of Australia president Malcolm Gunning told Domain.
Housing and rental prices have certainly increased, but Canberra remains an incredibly affordable place to live. This is especially clear when we compare Canberra to other Australian cities.
Property owners in the Australian capital are spending the smallest proportion of their incomes on home loan repayments in all cities. The national average is 30.4 per cent, but Canberra homeowners spent only 19.7 per cent in the most recent quarter, according to the report. Median incomes are also the highest in Canberra than in any other Australian city, at $1,000 more than the national average.
This is consistent with data produced by CoreLogic in December 2016. The property data provider's Housing Affordability Report indicated that in terms of the proportion of household income required for a 20 per cent home loan deposit, the proportion of household income required to service an 80 per cent LVR mortgage and proportion of household income required to rent a home, Canberra was one of the most affordable of all Australian cities.
Well, if you're looking to rent, move to or invest in property in our wonderful capital, you'll be living in one of the most reasonably-priced cities in Australia! While housing affordability is certainly an issue nationwide at the moment, the future remains bright in Canberra. There are other benefits of living here, too, including world-class tertiary education and a high quality lifestyle. Talk to the team at Ray White Belconnen to find out more.