The capital city is seeing a surge in new residential construction in the next five years.
Photo: APThe ACT’s capital is home to more than 30,000 people, but it is now home to the world’s second-most apartments.
The ACT also has the highest population density of any major city in the country.
It is estimated that the ACT is the third most densely populated metropolitan area in Australia, with 1.3 million people living in it.
In a report released by the Australian Bureau of Statistics in February, the ACT’s housing market has become a hot spot for developers.
“We’re seeing that there’s going to be a lot more activity around the ACT in the years ahead,” said Dr Greg Johnson, from the ACT Housing Institute.
“A lot of those are new developments coming on stream, and the growth is likely to be fuelled by the availability of supply.”
The ACT Government has identified 20 hot spots that are currently under construction.
“Hot spots” are areas where the ACT government has identified areas where it believes development will occur, but is unable to set aside development funds for specific projects.
“These are areas that the State Government has indicated are potentially worth investment,” Dr Johnson said.
“So we’ll see that activity and investment there.”
What is a hot location?
Hot spots are areas of interest, such as universities, hospitals and schools.
They can also include industrial and industrial parks, but are usually defined as being more than 10 kilometres apart.
“The vast majority of these are residential development areas,” Dr Paul Johnson, a senior adviser at the ACT Government’s housing industry group, said.
The new developments that are under construction are typically located in new, fast-growing areas in Canberra, but they are not being built in the city as a whole.
“There’s an expectation that the capital will see a lot of development, so we expect that there’ll be a significant influx of residential and commercial activity,” Dr Nicky Hynes, the managing director of the ACT Property Council, said at the launch of the report.
“It’s not just in the CBD, but across the city.”
What are the key trends?
The ACT Capital Area Growth Index has shown a strong growth in the ACT.
This year, it rose from 0.5 to 1.7 per cent, the highest growth since 2008.
But the ACT has had a number of setbacks in recent years, with a major recession and a major bushfire in the mid-2000s causing some major population loss.
“When we had the bushfire, the population in the capital went down by 2,500 people, that’s one of the lowest population losses of any capital in Australia,” Dr Hynes said.
In the past two years, the Capital Area has also seen a drop in residential activity, but the numbers still outnumber the number of apartments.
“In the last two years there’s been a major fall in the number.
So we’re not seeing an increase in housing demand,” Dr Andrew Johnson, the CEO of the Housing Institute, said, referring to the recent decline in housing prices.”
But that hasn’t stopped the ACT Capital from growing, it’s just that we’ve seen a much bigger growth in new development.”
What’s happening now?
There are several key trends that are affecting the ACT capital, Dr Johnson noted.
“First of all, we’ve had a major population decline in the last three years, which has had an impact on the population density.”
And secondly, the amount of residential development is going down and up, so there’s more development going in.
“That’s going through the market in the past couple of years, but we’re seeing a real shift in the market now.”
As the population declines, there’s a big shift towards industrial areas and residential areas, so that’s also a trend that we’re going to see,” Dr Hopkins said.
How does the ACT housing market compare with other major cities in Australia?
There have been other studies that have compared ACT housing markets to other major Australian cities, such Melbourne and Sydney, but Dr Johnson’s study focused on Canberra.”
The ACT has a lot to offer in terms of affordability, affordability to the middle class, affordability for families, affordability of renters and affordability for businesses.””
It’s the only one of these capitals that has a really high density of housing.”
“The ACT has a lot to offer in terms of affordability, affordability to the middle class, affordability for families, affordability of renters and affordability for businesses.”
For that reason, the whole market is a great opportunity for investors, for people who want to build here and are able to access that capital.
“What does the Government say?
The Government says it wants to keep the ACT as a place where it can build the future, as well as grow it.”
To be clear, the Government recognises that the Capital is the new face of Canberra, and it has a responsibility to continue to attract and retain