How Canberra Units Offer a Path for First-Time Home Buyers

While Canberra has some of the highest dwelling costs in the country, new data suggests that units are becoming a more accessible option. 

According to CoreLogic, only five of Canberra’s suburbs currently offer affordable unit prices, but this number could grow in the coming months.

Among these, Hawker stands out with a median unit price of $420,916, reflecting a slight increase of 0.4% over the last six months.

While these numbers are promising, the overarching trend in Canberra still leans towards high property prices. 

Despite this, units offer a unique opportunity for those looking to enter the market.

Eliza Owen, CoreLogic’s head of residential research in Australia, mentioned that while the ACT remains one of the most expensive regions, units are becoming a viable option for first home buyers. 

She highlighted that early pandemic investor activity led to an oversupply of units, which is now evident in Canberra’s market. With ongoing unit construction, further price adjustments could be expected as supply meets demand.

Buyers’ agent Benny Power of Jonny Warren Buyers Agency advises caution, noting that while there are more affordable options, Canberra’s median unit value has still increased by $135,760 since June 2019.

He suggests that units offer the best entry point into the market. “Now is a good time to be buying because there is plenty on the market,” Benny said, emphasising the importance of patience in the current market conditions.

Benny also stressed the value of using a buyers’ agent or waiting for the right property, which can lead to finding quality apartments in more desirable suburbs.

Recently, he helped first home buyers purchase a two-bedroom unit in Griffith under budget, despite initially considering only outer suburbs due to price.

“There is far more enquiry with buyers’ agents than a year ago,” Benny also noted, highlighting the increased demand for professional guidance amid market uncertainty.

He also warned against buying units at inflated “COVID-19 prices,” underscoring the importance of understanding current property values.

For first home buyers in Canberra, the message is clear: while affordability remains a challenge, units present a promising path to homeownership.

With the right approach – whether that means working with a buyers’ agent, being patient, or carefully considering market conditions – entering the property market may be more achievable than it seems.

Source: Why Canberra units could be solution for first home buyers