Dunlop proving attractive to buyers

The significantly lower price of homes in Dunlop is one factor enticing buyers to the area. The price of homes sits almost $100,000 below the current median house price for the ACT and Queanbeyan. As house prices across the ACT continue on an upward trajectory, Dunlop presents an affordable choice when compared to the  ACT’s significantly higher prices.

Buyers will have noticed that house prices are on the rise in Dunlop. The median price for a detached home jumped by 6.4 per cent over the year to $508,000, based on Allhomes’ sales data from the beginning of January to the end of July. An increase in demand for property in the area and relatively consistent supply level have put pressure on prices.

Demand in Dunlop rose 12.5 per cent to 81 properties sold over the first seven months of the year.  The supply of new properties over the same period rose by a mere 1.2 per cent to 82 properties listed.

The Dunlop profile predominantly consists of detached family homes. This sector made up 84.1 per cent of sales over the first seven months of the year. The remainder of the properties sold were townhouses.

Townhouses are becoming a favourable choice across the ACT and they are also becoming a popular choice among Dunlop buyers. Townhouse sales accounted for 15.9 per cent of sales throughout the first seven months of the year compared with 13 per cent of sales during the comparable period the year before. The affordability constraint of purchasing a detached house has certainly forced some buyers to consider a townhouse.

Developers have responded to the spike in the overall demand for townhouses. The latest building approvals from the ABS reveal townhouse building starts almost doubled over the first seven months of this year to 714 approved, compared with to 365 during the same period last year.

As townhouses grow in popularity it has also helped to push up the median price in Dunlop by 3.1 per cent to $438,000. With the average first home loan in the ACT sitting at $331,500, it is easy to understand why buyers are looking to the more affordable option of a townhouse.

Nicola Powell is a property expert for Allhomes. Twitter: @DocNicolaPowell. The MIX106.3 Real Estate Show, Saturdays 9am-10am.