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ACT highest median rents in country

Discussion in 'Real Estate' started by Jacque, 28th Jun, 2006.

  1. Jacque

    Jacque Team InvestEd

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    Sydney
    I was surprised to read this lately, especially given that the median sale price is higher in Sydney. Then again, I would imagine that ACT has a higher renting population, due to the transient nature of jobs in govt departments?
    And what about those land tax rates? The highest in Australia is certainly nothing to brag about!

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    Rents in the ACT are expected to rise even further as new levies and taxes hit in the ACT, according to the Real Estate Institute of Australia ACT branch.

    Canberra already has the highest median rents in Australia at $260 per week, ahead of Sydney’s $230, according to Australian Bureau of Statistics figures.

    REI ACT president Peter Blackshaw was reported today (25June06) as saying that there would likely be a flight of capital out of the ACT because of high Government charges.

    In the recent Budget the ACT Government put a further $450 per year impost on property owners with new water, emergency-services, utilities and rates charges.

    Land tax also went up and is now the highest in Australia.

    Blackshaw said that land tax in Victoria was about one tenth that in the ACT on the average house. It was $800 on a $500,000 house in Victoria against $7000 in the ACT.

    People would invest in Victoria rather than the ACT. It meant fewer dwelling on the rental market and therefore higher rents until the return was satisfactory.

    By CRISPIN HULL
     
  2. austing

    austing Well-Known Member

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    Hi Jacque,

    The land tax is certainly extremely high. We just sold our only holding in ACT recently (highrise unit) which used to be our PPOR then an IP for a few years. I was glad we sold as there is a lot of units and townhouses coming onto the market in the near future. I don't know who is going to rent them all over the medium term in particular.

    My main concern about Canberra is the very low population growth relative to other major cities.

    Cheers - Gordon
     
  3. -T-

    -T- Well-Known Member

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    I think this is only news to people who don't live in the ACT. :)

    Maybe it has something to do with ACT having the highest mean IQ and understanding the futility of personally owning an expensive PPOR. :p
     
  4. Coffee

    Coffee Member

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    This is news i love to hear..


    ACT housing demand to surge

    By CRISPIN HULL

    The demand for housing in the ACT would rise by more than 30 per cent in the next three years because a boost to the federal Public Service

    Planning Minister Simon Corbell was reported today (22June06) as saying that 7000 new federal jobs in Canberra were announced in the Budget. It would mean the demand for residential lots would go from 1900 to 2600.

    The ACT would lift supply accordingly, Corbell told a Legislative Assembly committee.

    Corbell said that the influx would also create greater demand for office space

    http://allhomes.com.au/c/ah?a=sna&i=1150936493 link to above post

    Geoff
     
  5. D&K

    D&K Well-Known Member

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    It will be interesting to see which way the market goes, I think Queenbeyan / Jerrabomberra might do better out of increased housing demand than the ACT with it's higher rates and taxes.

    It is always a little disappointing we you see national surveys saying how the ACT is affordable, or returns are high compared to elsewhere, but when you factor in the higher rates and land taxes (that start from the first $) it doesn't stack up (the higher rents go in taxes).

    We used to own two IPs in the ACT, and made reasonable CG over the last boom period, and they've been sold now. With the latest round of rises, along with water restrictions (sorry not restrictions, just a new "norm"), additional water rates charges (to make up for reduced water use?), threatened gas restrictions in the middle of Winter, and 30 public schools closing, investment in the ACT not going to be a priority for me. :(

    Dave
     
  6. Coffee

    Coffee Member

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  7. Tropo

    Tropo Well-Known Member

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  8. Coffee

    Coffee Member

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    Location:
    Canberra
    http://allhomes.com.au/c/ah?a=newsarchive

    News archives from Allhomes from Aug 2002 till Jun 2006... If anyone feels like reading what the media puts out each month dealing with Canberra & Qybn..

    BTW, i wasn't having a go at Jerrabomberra in past post, just linking what i read that could ? affect the area..

    I'm at the moment watching what could happen in the Woden area & also the new development for Centrelink in Tugg.

    I try and read what is/will happen long term in set areas of Canberra, i'm a buy in my own backyard kinda person.

    Two good links to read about whats in the Canberra pipe line..

    http://www.lda.act.gov.au/index.asp

    http://www.actpla.act.gov.au/plandev/sp-intro/index.htm

    Sorry guys, i have raved on a bit here, a few beers LOL... Anyway, i hope all will enjoy the reads & links...

    Geoff
     
  9. Qaz

    Qaz Active Member

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    I'm a Canberran myself. I haven't researched much into the market here (maybe I should), but my impressions are that Queenbeyan and other nearby suburbs over the NSW border offer better value and will continue to grow and gain ground on their ACT counterparts.