Demand grows for property in the Canberra suburb of Lyneham

As the gateway to Canberra’s inner north, Lyneham has many advantages. It’s close to the city, Braddon and Dickson and it’s filled with pockets of parkland, yet it’s more affordable than some of its inner-city neighbours.

Demand for property in the suburb has boomed this year and despite an increase in listings, homes are spending less time on the market.

As of Thursday, there were just two freestanding houses listed for sale in Lyneham among a sprinkling of apartments. Both properties will be auctioned next week and statistics show there is no shortage of interested buyers hoping to call the suburb home.

Allhomes data scientist Nicola Powell says 64 properties changed hands in Lyneham during the first eight months this year – an annual increase of 45.6 per cent or an additional 20 sales compared with the same timeframe in 2015.

“Lyneham is changing,” Powell says.

“That is definitely shown through the type of sales that we’ve seen in the suburb. It’s an interesting suburb because you’ve got a mix of residential zones and property types.”

She says the mix of properties, coupled with its central position, has created a high level of demand throughout all sectors of the market.

“Unit prices are just under $340,000, which is a great entry level price, but it’s so connected to the city,” Powell says.

First home buyers and investors hoping to take advantage of student demand have been attracted to these entry level properties, while a high median price for detached homes shows that it remains popular with the upper end of the market.

“The median house price of $734,500 is pretty substantial and well above the median for the ACT,” Powell says.

“Well-established families who are years into owning a home are also looking at Lyneham.”

The suburb is in the midst of regeneration with knockdown rebuilds replacing some of Lyneham’s older properties.

As a result, stunning turnkey properties sit alongside renovation projects, representing a diversity of stock even within the freestanding house market.

Peter Blackshaw Manuka agent Debbie Maddigan says Lyneham’s knockdown rebuild movement has raised prices in the suburb, with most buyers still hoping to buy a property that is move-in ready.

“The majority of buyers are looking for new or renovated homes because they are very time-poor,” Maddigan says.

“However, there is a small minority of people who are very interested in buying an older property to renovate and put their own touch on the home.”

Developers also have their eyes on the suburb’s older homes, McGrath Dickson director Maree van Arkel says.

The majority of Lyneham is zoned for mid to high-density development and van Arkel expects to see more units and townhouses fill the suburb’s streets.

Townhouses, she says, are still in short supply and would be particularly well received by the market.

“There are so many units going up, but what a lot of buyers are really looking for are townhouses and villas,” van Arkel says.

“Nice villas and townhouses will always sell because people definitely like to have that outside space.”

Powell says approvals for unit and townhouse developments are on the rise and unit sales have more than doubled this year.

Maddigan says she expects to see Lyneham become even more popular as Canberra expands.

“As the Gungahlin region continues to grow and the light rail progresses I feel that [Lyneham] will be recognised as an inner-city suburb because of its locality and convenience,” she says.

Lyneham fast facts

• Median house price: The median price for a detached house increased by 4.2 per cent to $734,500 over the past 12 months, according to Allhomes sales data from January 1 to the end of August.
• Median unit price: The median price for units fell 2.5 per cent to $338,750. This result is in line with declining unit prices across Canberra, however unit sales in Lyneham have doubled this year.
• Yearly sales: During the first eight months of 2016, 64 properties sold in Lyneham. This is a 45.6 per cent annual increase, or an additional 20 sales, compared with the first eight months of 2015.