People propelling three Gungahlin suburbs to the top of the Housing Industry Association’s annual residential hot spots directory are looking beyond temporary cuts to the Commonwealth public service to a positive future in Canberra, according to a senior economist.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Their new homes have placed Crace, Bonner and Casey at the top of the 2014 edition of the HIA’s annual directory of the nation’s fastest-growing housing markets.
The league ladder takes in localities with at least $100 million of new dwelling approvals in 2012-13, plus a population growth rate above the national average of 1.8 per cent. Rankings are based on population growth rate in each locality.
As well as $112 million of new dwellings, Crace had a population growth of 58.1 per cent. Bonner had $121 million of new dwellings and a population spike of 43.3 per cent while Casey had $131 million of approvals and a growth spurt of 40.6 per cent.
HIA senior economist Shane Garrett said building in the new suburbs had been significant and was likely to continue with low interest rates.
"It just goes to show the residential building market here is thinking long-term, is looking beyond the temporary phase of Commonwealth government cutbacks and to the longer-term development of the city."
Sentiment was not the driver, more a case of greenfield sites able to accommodate population growth.
‘"It is also, I suppose, a result of the ACT government’s land release that has been going on over the last few years which is facilitating development of those new suburbs," Mr Garrett said.
Figures are based on the value of new dwellings, do not distinguish between detached houses and units and are issued 12 months later on account of population statistics becoming available.
During the period considerable employment growth drew people from other states, Mr Garrett said.
"At that time the rental market was quite strong and interest rates were pretty low, the investor was enticed into the market as well," he said.
Demand for new dwellings is still strong, according to Mr Garrett, because of substantial rental growth in the past five years.
"And, with interest rates now so low, the incentive to purchase a home is still quite significant.
"Population growth has slowed over the past nine months, with activity in the public service workforce, but there is still a strong demand for accommodation here and new accommodation," Mr Garrett said.
