Canberra Outlook The Canberra property market is expected to strengthen in 2011, led by investors, population growth and strong economic conditions. House, land and apartment/strata property prices are expected to increase by between 1 and 5 per cent, due to growth predictions, high wages, secure employment and lack of supply. Vacancy rates are expected to remain steady while rents should increase by between 1 and 5 per cent due to lack of supply and low vacancy rates. Investor activity is expected to increase by around 5 per cent in the coming six to 12 months, driven by low vacancies, stable employment and high wages. It is expected the next six months will see an increase in forced sales due to mortgage defaults in the Canberra region due to rising interest rates. Banks should be doing more to help keep the property market healthy and robust in 2011 and should consider abolishing mortgage exit fees which would create greater competition between the banks and afford mortgage holders with better loans.
14 First National Real Estate 2011 Property Market Outlook