New Developments Update
David Shearer, New Developments Manager
Here we are again, leaving behind the chills of winter and looking forward to the warmer months ahead. The winter behind us has been a winter of discontent for many established home owners pursuing a sale price that may have been achievable late in 2007, but in a buyers market where increased supply of available property and increased competition between sellers has been the norm through Winter 2007, the eventual sale prices could well have been a little less than sellers expected.
When the established market softens, even if it is only briefly, it is natural for most people to assume that the apartment and townhouse market will follow, however this assumes a similar level of supply and demand exists in both sections of the market.
The reality is somewhat different.
There are currently approximately 1800 established properties listed for sale on allhomes.com.au in Canberra. This number may increase slightly as Spring sellers enter the market or decrease as buyers come out of winter hibernation. 1800 homes equates to an average number of approximately 18 homes per suburb, which is still not a lot, but obviously some suburbs have higher numbers of properties for sale than others.
The number of new apartments and townhouses for sale by comparison is so little, it defines the reality why new apartments and townhouses are so hard to find, particularly in the more affordable price ranges below $400,000. My allhomes search of all “new construction” for “units, apartments, villas, dual occupancy, tri occupancy and townhouse” type properties yielded a diminutive 27 dwellings.
27 new dwellings represents an all time low for supply in my 20 years working within the Canberra real estate market. I happen to know there are more than 27 dwellings for sale, but I can’t find more than another 40. So, if we hopefully assume that there may be 100 new properties for sale in Canberra, it is still a number that reinforces the hopelessly undersupplied reality we are faced with.
There are over 80 suburbs in Canberra without a single new property for sale. If you have recently objected to that proposed townhouse development or dual occupancy within your suburb, then you may well be assisting this severe undersupply, even though you may well have a firm and solid belief you are objecting for good reason. Maybe these objectors will think more of this when deciding to try and find a suitable townhouse type of property to move into in the future.
Ultimately the undersupply of new dwellings within Canberra’s suburbs is so significant that retirees and empty nesters are faced with very little opportunity to leave behind an unmanageable garden and unnecessarily large home, because there is no realistic option to move to.
This undersupply means prices for new apartments and townhouses are on a consistent climb, regardless of the fluctuations in the established market. Demand exceeds supply so markedly that almost all new dwellings are being sold off-plan possibly years before they are completed.
Independent has a handful of built and ready to occupy 3 & 4 bedroom townhouses in ‘Lincoln’ at Bruce (from $599,000) and 3 bedroom townhouses at ‘Solstice’ in Watson (from $495,000).
Unbelievably, we still have a small selection of apartments for sale from $309,500 at ‘Vantage’ in Bruce, and just one top floor apartment remains for sale at $354,900 at ‘Oracle’ in the Belconnen Town Centre.
We released ‘Aspire’ at the Kingston Foreshore in late August and have already sold over 50% of the development. The apartments still for sale will be re-priced within the first 2 weeks of September - so the opportunity to secure a Kingston Foreshore apartment well under $400,000 may soon be a thing of the past.
New apartments and townhouses make ideal investment properties and are the logical choice for most first home buyers due to the saving during construction benefits of purchasing off-plan. An apartment or townhouse also makes a great base for empty nesters who have better things to do with their lives than sit around home all day watching the grass grow, and then mowing it!
‘Pearl’ at the Kingston Foreshore offers a range of premium 3 bedroom apartments. Designed for the discerning buyer, ‘Pearl’ offers the opportunity to purchase an exceptionally crafted, generously sized and well appointed residence designed exclusively to appeal to live-in owners.
We have new apartment developments coming up for sale off-plan soon in Lyneham, the Belconnen Town Centre and in the inner south. Interest in these developments is realistically expected to be very strong.
If you are interested in purchasing an apartment off-plan to secure a future investment or to experience the lifestyle benefits of apartment living, then contact Independent Property Group today to discuss a property suitable for you from the range of properties we currently have listed for sale.
Until next month.
David Shearer
Director Residential Developments