Australian Capital Territory

The ACT government has scrapped stamp duty for off-the-plan apartment and townhouse purchases up to $500,000 from July 1.

The stamp duty abolition will apply to first-home buyers and other owner occupiers who exchange purchases for off-the-plan in the territory from July 1.

<a href="https://www.urban.com.au/developments/act">Buyers of newly built apartments or townhouses at $500,000 will save $10,360 in stamp duty.</a>

The eligibility criteria includes satisfaction of residency requirements, that at least one buyer must live in the home continuously for at least one year, starting within 12 months of the date of completion/settlement date.

Since 2012 the ACT has been reducing stamp duty.

&ldquo;This is a further step in our tax reform program and one that encourages an increased supply of housing below the $500,000 threshold,&quot; ACT Chief Minister Andrew Barr said.

The announcement is part of the territory&rsquo;s 20-year plan to phase out stamp duty and replace it with an annual land tax.

The plan has been underway since 2012.

Stamp duty has also beeen reduced by $1040 for any owner-occupier established property purchase between $200,000 to $1.455 million in 2021-22.

As part of the ACT tax reform program, average general rates have increased to offset revenue that would otherwise be lost due to the abolition of stamp duty.&nbsp;

This did not occur in 2020-21 as part of the Government&rsquo;s response to the COVID-19 pandemic.

The ACT government has scrapped stamp duty for off-the-plan apartment and townhouse purchases up to $500,000 from July 1

jchancellor

ACT stamp duty scrapped for owner occupier off the plan purchases up to $500,000

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EXPERT OBSERVER
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<a href="https://petewargent.blogspot.com/2019/01/hows-act-land-tax-going"></a>Canberra rents surge </h3>
<div id="post-body-7598088234210480051" class="post-body entry-content">
<div>I've been consistent on this point (often wrong, but never in doubt!): taxes in the Australian Capital Territory (ACT) are far too high for landlords to invest there en masse, which will lead to a rental shortage as the population steadily grows. </div>
<div> </div>
<div>There are a lot of 'well, in theory...' type comments made about this point, however, including by me, so let's stick to the hard data for today.</div>
<div> </div>
<div>Rental vacancy rates fell from 2½ per cent in 2014 when rate rises were first introduced to 0.6 per cent in October 2018. </div>
<div> </div>
<div>Rental markets are seasonal in the ACT and often tighten through the early months of the calendar year, and in turn Canberra could take out Hobart in Tasmania for title of most undersupplied capital city rental market in 2019, which is is some feat (click to expand): </div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-vT1xNQ-Dd80/XDbv-FMFELI/AAAAAAAAt3c/cYKMVTIhmYgYm33-es2Bb-k5EyZiZE-ygCEwYBhgL/s1600/SQM2.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-vT1xNQ-Dd80/XDbv-FMFELI/AAAAAAAAt3c/cYKMVTIhmYgYm33-es2Bb-k5EyZiZE-ygCEwYBhgL/s640/SQM2.jpg" width="640" height="350" data-original-height="797" data-original-width="1453"></a></div>
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<div>Asking rents for houses in Canberra are now up by more than 26 per cent over the past three years alone. </div>
<div> </div>
<div>A major issue is that rates are often far too high on units as well, despite the relatively low land value content of this property type. </div>
<div> </div>
<div>The asking rent for 2-bedroom units in Canberra is also up by more than 23 per cent over the same time period!</div>
<div> </div>
<div>In Canberra! </div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-qPJMlBBFvq8/XDbv93SNgdI/AAAAAAAAt3g/ybb9rzPeXyQohtoeTKB8Ta16YaZc7WzGACLcBGAs/s1600/sqm1.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-qPJMlBBFvq8/XDbv93SNgdI/AAAAAAAAt3g/ybb9rzPeXyQohtoeTKB8Ta16YaZc7WzGACLcBGAs/s640/sqm1.jpg" width="640" height="188" data-original-height="229" data-original-width="777"></a></div>
 <div>Source: SQM Research</div>
<div> </div>
<div>
If you don't like asking rents - and you may not - then Domain's actual rental report figures this week were similar. Domain reported that Canberra is now a more expensive city in which to rent a home than even Sydney, with rents spiralling as high as the Black Mountain Tower. 
</div>
<div> </div>
<div>Dr. Nicola Powell:</div>
<div> </div>
<div>"With investors slugged with higher rates and land taxes, it is likely landlords are passing on the additional costs to tenants, or opting for high yielding short-term leases in order to recover costs."</div>
<div> </div>
<div>On the plus side there have been some significant apartment projects approved for construction, but one questions which landlords are going to buy them and rent them out. </div>
<div> </div>
<div>Politicians seeking tax deductions, perhaps. Foreign investors won't supply the rentals any longer, having already been taxed out of the market. <div class="separator"><a href="https://4.bp.blogspot.com/-SLAOdeLo-_w/XDb2yteH7-I/AAAAAAAAt38/-gvstrSWvQgPXqqff-6uw_xnFupyVf8EwCLcBGAs/s1600/China.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-SLAOdeLo-_w/XDb2yteH7-I/AAAAAAAAt38/-gvstrSWvQgPXqqff-6uw_xnFupyVf8EwCLcBGAs/s640/China.jpg" width="640" height="128" data-original-height="146" data-original-width="729"></a></div>
</div>
<div>Some people are even campaigning for high land taxes, and the ALP negative gearing reforms, and a doubling of capital gains tax (all of this on top of the changes made to foreign investment, interest-only lending, restrictions on Division 40 depreciation, disallowance of travel expenses etc etc.). </div>
<div> </div>
<div>There's nothing much to say but best of luck with that!</div>
<div>
 It's a small city, which grows in population by less than 10,000 per annum. Way to go!</div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
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pwargent-M4siyDbqQY

How's the ACT land tax going? And what it means for property investor supply: Pete Wargent

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The ACT residential property market continues to be driven by high wages support by strong government employment and low general unemployment, according to a recent Herron Todd White (HTW) residential report. 
The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.
 The public service accounts for 42% of the ACT’s total workforce which is heavily responsible for the strong $108,000 per year median income in the ACT. 
The report suggests the high median income keeps property prices on the high comparative to the rest of Australia. 
The median house price in Canberra currently sits at $691,000 (January 2020) compared to the national average of $809,000 (January 2020) making it the 3rd most expensive Australian city behind Melbourne and Sydney.
A four bedroom house in Gordon has recently been sold for $685,000.
Set on 525sqm, the <a href="https://www.realestate.com.au/sold/property-house-act-gordon-133438178" target="_blank">21 Rollins Place home</a> (pictured below) comprises formal lounge, informal living area, kitchen, four bedrooms and study nook.
It is located within walking distance to Point Hut Pond, playgrounds, schools, shops and transport. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/28/gordon%20.jpg" alt="">
 
Property under the $600,000 mark continues its popularity among first home buyers, which is likely to continue.
A current listing is a Harrison townhouse priced at $410,000.
The three bedroom, two bathroom home is situated at <a href="https://www.realestate.com.au/property-townhouse-act-harrison-133514782" target="_blank">159/22 Kings Canyon Street</a> (pictured below).
The townhouse features courtyards, galley style kitchen, large under stair storage and double enclosed garage.  
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/28/harrison.jpg" alt="">
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The weakening economy due to the Coronavirus pandemic makes short term conditions unpredictable.
 Strong government employment suggests that the ACT’s unemployment rate will remain low and the ACT local economy will remain stronger than other economies relying heavily on private sectors.
However market conditions are unpredictable and the unprecedented circumstances provide little guidance in what may happen in the near future.
</div>
</div>
</div>
</div>
<div>Note regards COVID-19</div>
<div>
This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks. 
</div>
<div>This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.</div>
</div>
</div>
</div>
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j.ballantyne1990-6AQqhLzZaK

ACT property market continues to be driven by strong government employment: HTW residential 

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The 2019 ACT Architecture Awards’ top prize has been won by a contemporary extension to an inner-south bungalow.
The prestigious Canberra Medallion was presented to Austin Maynard Architects for the Empire house (pictured above).
Minister for Planning and Land Management Mick Gentleman handed over the award.
The project also won the Gene Willsford Award for  Residential Architecture – Houses (Alterations and Additions).
Australian Institute of Architects ACT Jury Chair, Sarah Truscott, said the project displayed an understanding of the building’s heritage.
"Empire is located on a road that forms a key part of Burley Griffin’s masterplan,” said Truscott.
“The architects have shown respect for Canberra’s built heritage by preserving the best of this home and creating smart additional living spaces inside and out for all seasons."
Other major winners include Edgeworth Apartments, which won the Sydney Ancher Award for Residential Architecture – Multiple Housing for Cox Architecture, and the Concrete House by Rob Henry Architects won the Malcolm Moir and Heather Sutherland Award for Residential Architecture – Houses (New).
Clarke Keller and dwp|design worldwide partnership received the Enrico Taglietti Award for Educational Architecture for their work on ANU’s Hanna Neumann Building. The building also won the W Hayward Morris Award for Interior Architecture and the Pamille Berg Award for Art in Architecture.
"This new building brings together ANU’s Mathematical Sciences Institute and Computer Science in a new teaching and research hub. Embedded coding in the façade and interior details create a series of mathematical puzzles for students to decipher as they work their way up the building with the most complex on the top level," Truscott said.
A total of 30 Named Awards, Awards and Commendations were presented on the night.
ACT Chapter President, Philip Leeson, said: “This year’s awards saw 37 entries ranging from small alterations and additions to large public commercial buildings and institutions.
“Each year our awards showcase the extraordinary talent of the architecture profession and the outstanding buildings it produces and this year is no exception.
“The architects and their projects recognised by this year’s jury will enter the canon of great architecture that has contributed to the city of Canberra that we love.”
Named Award and Award winners will now progress to the National Architecture Awards to be announced on Thursday 7 November 2019. 
Full list of winners: 
<ul>
<li>Residential Architecture – Houses (Alterations and Additions) </li>
</ul>
The Gene Willsford Award – Empire by Austin Maynard Architects
Award – Yarralumla Shed by Gerard O’Connell (pictured below)
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/13/Yarralumla%20Shed.jpg" alt=""> 
<ul>
<li>Residential Architecture – Houses (New) </li>
</ul>
The Malcolm Moir and Heather Sutherland Award – Concrete House by Rob Henry Architects (pictured below) 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/13/concrete%20house.jpg" alt="">
Award – Red Hill House by Mathieson Architects
Award – Courtyard House by Rob Henry Architects
Commendation – Carwoola House by de Rome Architects
<ul>
<li>Residential Architecture – Multiple Housing </li>
</ul>
The Sydney Ancher Award – Edgeworth Apartments by Cox Architecture
Commendation – Shophouse by JUDD.studio
Commendation – Warehouse by JUDD.studio
<ul>
<li>Commercial Architecture</li>
</ul>
Commendation – Manuka Oval Media and Function Centre
<ul>
<li>Interior Architecture </li>
</ul>
The W Hayward Morris Award – ANU Hanna Neumann Building by Clarke Keller and dwp|design worldwide partnership
Commendation – Denman Village Shops by AMC Architecture (pictured below)
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/6/13/denman%20village.jpg" alt=""> 
<ul>
<li>Educational Architecture</li>
</ul>
The Enrico Taglietti Award – ANU Hanna Neumann Building by Clarke Keller and dwp|design worldwide partnership
Award – CGGS Early Learning Centre by Daryl Jackson Alastair Swayn
<ul>
<li>Public Architecture</li>
</ul>
Commendation – Cricket ACT by Clarke Keller
<ul>
<li>Small Project Architecture </li>
</ul>
The Cynthia Breheny Award – Charly_Demonstrator by Stack Space
<ul>
<li>Sustainable Architecture </li>
</ul>
The Derek Wrigley Award – CGGS Early Learning Centre by Daryl Jackson Alastair Swayn
Award – Courtyard House by Rob Henry Architects
<ul>
<li>Enduring Architecture </li>
</ul>
The Sir Roy Grounds Award – Wybalena Grove (1974) by Michael Dysart 
<ul>
<li>COLORBOND® Award for Steel Architecture </li>
</ul>
Award – Shophouse by JUDD.studio
<ul>
<li>Chapter Awards and Prizes </li>
</ul>
Canberra Medallion – Empire by Austin Maynard Architects
The Pamille Berg Award for Art in Architecture –ANU Hanna Neumann Building by Clarke Keller and dwp|design worldwide partnership
The Robert Foster Award for Light in Architecture – Red Hill House by Mathieson Architects
Architectural Professional Practice Award – Eric Martin, Eric Martin &amp; Associates
President’s Medal – Paul Barnett, Paul Barnett Design Group
Clem Cummings Medal – Jenny Edwards, Lighthouse Architecture &amp; Science
Emerging Architect Prize – Will Gardner, Guida Moseley Brown Architects
ACT Chapter Student Medallion – Byron Kelly, University of Canberra
Daryl Jackson Alastair Swayn Graduate Prize – Mark Bersolto, University of Canberra
John Redmond Prize – Justin Williams, University of Canberra
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Empire take out top prize at ACT Architecture Awards

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South Canberra is the dearest region for rents in the nation's capital, according to the recent CoreLogic RP Data Quarterly Rental Review.
Click charts to open in new windows: 
<a href="/images/2015/04/10/canberra-april-13-one.jpg" target="_blank"><img src="/images/2015/04/10/canberra-april-13-one.jpg" alt=""></a>
<a href="/images/2015/04/10/canberra-april-13-two.jpg" target="_blank"><img src="/images/2015/04/10/canberra-april-13-two.jpg" alt=""></a>
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po-LsXgBTHBmX

South Canberra home rental the ACT's priciest: CoreLogic RP Data

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There are few opportunities these days to write anything bullish about the Canberra property market.
All the data suggests prices are stagnating or falling and rents are down significantly, with a 5% annual decline for the median house rent and a 7% fall for apartments.
While Sydney three hours down the road is pumped up by a strong state economy, a big infrastructure spend and the confidence created by competent governance, Canberra is mired in negativity and uncertainty thanks for cuts to the public service and an oversupply of apartments.
But, as is so often the case, there are different stories to be found if you dig beneath the generalised figures about a city.
The Gungahlin precinct is one sector of the Canberra market showing some life. It will benefit in future from the new light rail system, as well as the relocation of 650 public service jobs to that part of Canberra.
The territory's Chief Minister Andrew Barr has confirmed that 400 public servants from ACT Shared Services will vacate Woden this year and head north to Gungahlin.
The move will leave a lot of empty spaces in the Callam Offices complex at Woden, but the biggest impact is likely to be the positive one for Gungahlin – particularly as another 250 public servants will pulled from other areas and relocated to Gungahlin as well. 
The move, taken in conjunction with other unhelpful events, will hurt the economy of Woden and possibly property markets in surrounding areas, which are struggling already.
<a href="https://www.canberratimes.com.au/national/public-service/2015s-perfect-storm-for-woden-will-be-the-public-service-exodus-20150222-13gvdr" target="_blank">The Canberra Times reported</a>: Woden Valley Community Council chairman Martin Miller said the town centre was "probably not prepared" for the departure of so many regular workers.  "The federal public service is decreasing its presence as well – the Department of Human Services was moved to Tuggeranong years ago and the Department of Veterans Affairs is due to move as well," Miller said. "It will have an impact – it's sort of like the perfect storm."
Property markets in suburbs surrounding the Woden Town Centre have been weak performers in recent years. Suburbs like Phillip, Lyons, Hughes and Mawson have median house prices lower than they were three years ago.
They, along with others like Garran, Chifley and Pearce, all have long-term capital growth rates in the 3-4% range, which is poor by national standards.
Where Woden loses, Gungahlin gains. Generally, this precinct of Canberra looks to have better prospects than most in the national capital, helped by the Capital Metro light rail system, which will link Gungahlin to the city centre.
The light rail system is currently in the procurement stages. The ACT government has named four private business consortiums, which will be considered for the construction of the $800 million light rail line.
The targeted travel time from Gungahlin to the city via Northbourne Avenue, the Federal Highway and Flemington Road is 25 minutes. Experience shows that new transport infrastructure can be a game-changer for residential property markets.
The Gungahlin precinct is currently one of the few sections of the Canberra market showing some life. While Canberra prices generally have not grown in the past 12 months, some suburbs in the Gungahlin area have delivered solid increases in median house prices.
They include Palmerston (up 7%), Amaroo (up 5%) and Harrison (up 6%).
Unlike the Woden precinct, suburbs around Gungahlin mostly have values higher than three years ago, though not a lot higher. Amaroo, for example, has grown an average of 4% per year over the past three years.
This precinct also shows up in The Price Predictor Index published by Hotspotting. It has a couple of suburbs listed as Rising Steadily – Palmerston and Nicholls – and others classified as Consistency markets, including Ngunnawal, Franklin and Amaroo.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

Not all doom and gloom for Canberra: Terry Ryder

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The Reid, ACT home of late novelist Bryce Courtenay and his wife Christine has been sold for $1.8 million.
The Canberra home on 1,045 square metres at 35 Euree Street was listed for auction last weekend after Christine decided to return to Sydney.
The couple lived in Canberra following the author's diagnosis of cancer.
Listed through Peter Blackshaw Manuka agent Mary Debus, the three bedroom home had been bought for $1.29 million in 2008.
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jchancellor-FAypfDUnLy

Bryce Courtney's former Canberra home sold

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Prices growth in Canberra has been relatively flat over recent years, reflecting the impact of a declining local economy, according to the Domain Group senior economist, Andrew Wilson.
"Canberra has clearly benefited least from the sharp cuts in interest rates through 2012-13, which activated most capital city housing markets," said Wilson.
"Federal government fiscal consolidation policies over recent years have impacted the local economy through public service job losses and service cuts, and this has had a predictable impact on housing market activity."
<img src="/images/2015/03/12/canberra-mar-12-one.jpg" alt="">
Source: Domain Group
Over 2014, Canberra recorded modest price growth of just 0.9%, following the previous year’s 2.2% result.
"Through 2015 the Canberra housing market looks set to maintain its modest but steady performance of recent years," he said.
<img src="/images/2015/03/12/canberra-mar-12-two.jpg" alt="">
Source: Domain Group
Recent positive signs for the local market remain with increased auction activity recorded towards the end of 2014 and solid buyer activity early in 2015.
"Lower interest rates will feed into buyer confidence and add to the prospects of rising buyer activity," Wilson said.
"Canberra’s median house price is set to increase by between 1 and 3% through 2015."
<img src="/images/2015/03/12/canberra-mar-12-three.jpg" alt="">
Source: Domain Group
Domain Group tips the best performers will be the middle and upper price market sections as well as regions that experienced subdued prices growth over recent years as value perceptions drive increased changeover buyer activity.
"As usual, however, much will depend on the performance of the local economy, which has recently shown encouraging signs of improvement," said Wilson.
"Government fiscal consolidation policies remain an ever-present impediment for the local Canberra housing market."
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Modest price growth tipped for Canberra: Andrew Wilson

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ME Bank has released a support package for ACT home owners affected by Mr Fluffy asbestos that sign on to the government’s buy back scheme.
The package allows home owners to borrow against their dwelling to accelerate the purchase of an alternative home.
Up to 80% of an agreed value on an existing property will be available through ME Bank, with standard lending criteria still to apply. The standard hardship policy will also be available to these property owners.
The hardship policy allows deferred or reduced home loan repayments if they are facing financial hardship.
Around 1,000 residences in Canberra had loose amosite asbestos installed by Mr Fluffy from the late-60s to the 70s.
Between 1988 to 1993, the federal government attempted to remove the asbestos, but did not manage to clear the properties.
Jamie McPhee, CEO of ME Bank, said that home owners understandably want the certainty and ability to move on with their lives.
It is important people know the banks are here to help people through this difficult time, said McPhee.
“To help them ME Bank has agreed to lend on their existing Mr Fluffy-affected homes using standard lending criteria, and as soon as they join the buy back. That means they can start looking for and potentially buy a new home as soon as possible,” he said. 
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