A developers dream.
By Peter Micalos
The ACT market is an attractive and untapped market for sophisticated property developers.
Apartments are an emerging market like the smart phone was 15 years ago.
Canberra is a young, new and emerging city.
Only now, are apartments becoming a desirable, logical and economical choice for many buyer demographics.
Only now, are apartments and townhouses representing a much greater (and majority) piece of total new dwelling supply in the ACT.
The ACT market has the following key characteristics. Don't let anyone tell you otherwise:
- LAND IS CHEAP
- LAND IS ACCESSIBLE
- COMPETITION IS WEAK
- MAJORITY OF SUPPLY IS CONTROLLED BY THE GOVERNMENT RESULTING IN STABILITY
- THERE IS LOW PRICE VOLATILITY
- THE MARKET IS GROWING
- FAVOURABLE DA OUTCOMES CAN BE ACHIEVED
- YIELDS ARE THE HIGHEST IN THE NATION
- UNEMPLOYMENT IS THE LOWEST IN THE NATION
- AVERAGE HOUSEHOLD INCOME IS THE HIGHEST IN THE NATION
- THERE IS LOW SETTLEMENT RISK
- PRICES ARE COMING OFF A LOW BASE
- PROFIT MARGINS ARE VERY STRONG
- APARTMENTS ARE VERY AFFORDABLE
- RETURN ON EQUITY IS VERY STRONG
- SALES VELOCITIES ARE HEALTHY
- THE MARKET HAS COMPELLING RISK ADJUSTED RETURNS
The market is ripe of opportunity for new sophisticated entrants.
The ACT is on a journey to become...
"Australia's next great city"