Canberra remains Australia’s most resilient office market
Image – Canva.
  • The ACT’s real gross state product increased by 2.8% during 2020-21, well above the 1.5% national growth over the same period
  • 38% of the Commonwealth government's workforce is based in Canberra
  • Vacancy rates in Canberra are around 1%

The build to rent (BTR) sector continues to grow in popularity, with the nations capital now becoming an attractive hotspot for such activity.

Given Canberra’s transient, white-collar population, BTR assets are becoming an attractive value proposition.

Despite the pandemic, the ACT’s real gross state product increased by 2.8% during 2020-21, well above the national 1.5% growth over the same period.

The projected growth of the public sector, along with ongoing infrastructure investments, will continue to support the territory’s economy.

Notably, the ACT is forecast to have the strongest population growth in the 10 years compared to other global OECD cities.

“As the seat of Australian Government, Canberra is relatively insulated from the changing economic situation we are seeing more broadly,” noted JLL’s Managing Director – ACT, Tim Mutton.

“This relative safety is attractive to investors, and coupled with our positive economic story locally, tight vacancy rates and very controlled supply pipelines, Canberra is presenting compelling value on a risk adjusted basis.”

Tim Mutton, JLL Managing Director – ACT

38% of the Commonwealth workforce is situated in Canberra. According to JLL’s data, 8.2% apartment rental growth has been recorded in Greater Canberra over the past 12 months (through to April 2022) with a vacancy rate of just 1.09%, as of June.

BTR has emerged in Canberra as part of a wider move towards alternative investment strategies for large-scale investors to create viable investments, such as in multi-unit housing scheme, that aim to fill the current rental market gap.

“Canberra has a particularly transient workforce of high-income earners underpinned by public sector employment, consulting and supporting services which makes it a prime market for build to rent,” said David Hill, JLL Alternative Investments – Australia Senior Director.

“With residential vacancy rates of around 1% and a rental population of 38% versus 30% nationally, we expect Canberra to be a key focus for the national BTR players.”

Apartment complex for sale

JLL has been appointed to sell 100 Northbourne Avenue, Canberra, an operational 153-apartment building. There is an opportunity to reposition this as a build-to-rent asset.

Is is also unique given it is a completed asset, thus bypassing rising construction costs, with current improvements estimated at $65 million.

International expressions of interest for this property close on 27 September 2022.

You May Also Like

Construction titan Beehive Homes finds its new home in a prime Williamstown North warehouse

NSL Property Group facilitated the $650,000 deal, highlighting the property’s prime location and industrial versatility.

Retail renaissance? Australia’s retail vacancies shrink, with Melbourne taking top spot

Retail vacancies fall nationally, as office workers, tourists, and students bring life back to CBDs, boosting retailer appetite for space.

Australia’s premium hotel sector thrives despite economic turmoil, sees $1.53 billion in transactions over 2023

Australia’s premium hotel market shows robust growth, with over 36,000 new rooms developed in the past decade.

Swiftie fever sweeps Australia: Hotel rates soar as fans flock for iconic singer

Record rates exceeding $1,500 per night observed near venues hosting major events like Blink 182 and Taylor Swift.

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.