Canberra • The Federal Government is in the process of cutting...

Canberra

• The Federal Government is in the process of cutting jobs,
with a stated objective of reducing staff numbers by 16,500
jobs by July 2017.

• The impact of job losses is evident in the unemployment
graph – with the unemployment rate deteriorating since
earlier this year. Unemployment in Canberra is now at its
highest level since its low of 2.5% in November 2007. The
participation rate has also been dropping since August
2012.

• The unit market has lost value of about $38,500 since it’s
peak of $438,000 in August 2011.

• The house market has also lost value, but at a lower rate –
the peak value in the house market was reached in
November 2010 at $541,500.

• Residex calculates that this market has a surplus of
approximately 3,000 dwellings, which is significant as this
market is relatively small.

• Affordability in the ACT is amongst the best in the nation,
which is a function of higher household income and lower
property values. This suggests that once the Federal
Government begins employing again, this market should
move forward quite strongly.

• Property owners in Canberra should be patient and wait for
prices to increase when the Federal Government decides to
expand.