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Unsurprisingly, a leading figure in the ACT’s real estate sector believes the territory is in desperate need of fresh rental stock if current market woes are to be cured.
In the eyes of Maria Edwards, the chief executive officer at the Real Estate Institute of the ACT (REIACT), the city’s rental market is split into two sections: properties leased for over $600 per week and those rented for under that threshold.
Speaking on a recent episode of the Secrets of The Top 100 Agents show, Ms Edwards explained the different sectors of the market have performed differently over recent months, with the lower end of the market comprised mainly of units, the market is “still very tight,” which the more expensive end of the price spectrum is experiencing “quite slow” conditions.
A growing trend among tenants in the ACT is the decision to opt out of upgrading to bigger, better properties, with those who traditionally sought three-bedroom homes now choosing to reside in two-bedroom units due to the affordability factor.
And while this has positive outcomes for unit-owning investors, with rents for two-bedroom units rising to within $100 of a three-bedroom home, a stat previously inconceivable, it has created an environment screaming for increased stock.
“Landlords are looking for good quality medium density housing, which is something we don’t have so much of in the ACT,” she said, adding “I think it’s really popular for renters, but it’s hard to come by as an investor.”
Given “people want to invest in quality stock and not pay top dollar” Ms Edwards hopes more medium density housing will be on the way, inspired by future changes to town planning laws which are “going to allow for a bit more infill close to the city”.
She expects these supply issues to be stretched further by returning overseas migrants and international students who’ve begun their return to the market following a multi-year pandemic-induced lull.
In Ms Edwards’ belief, despite low-stock levels, Canberra has “always been a relatively good investment option” especially if you analyse the underlying economic figures in the Australian capital, which includes low unemployment, high wages, and a large public service sector, which she noted “is always a reliable source of tenants”.
This, she explained, spells good news for the high portion of overseas investors in the Canberra market, many of whom are “in it for the long haul”.
And while she accepts government intervention is necessary to reduce the headwinds affecting investors and tenants, Ms Edwards believes the city possesses a lot of property-related legislation with an assessment of “the impact that legislation can have on investor’s confidence”, which she feels is “really important”.
Moving forward, she concluded her role, and that of the REIACT, will be to attempt to build a bridge between landlords, agents, and the government to make sure these impacts are recognised before something’s actually enforced.
