Nicola Powell: Ngunnawal bucks buoyant trend of neighbouring suburbs

The population centre of Canberra is shifting north due to the burgeoning suburbs in Gungahlin.

The northern districts are a hive of activity through the creation of new suburbs and heightened levels of development, as well as urban infill in existing suburbs.

Gungahlin has been transforming through private and public sector spending and has the future prospect of light rail attracting buyers to the district. Over the last decade the population has doubled and this level of growth does not look set to stop.

Buyer activity in the Gungahlin suburb of Ngunnawal does not appear to be adding to this statistic. Demand dived by 29.8 per cent to 99 properties sold across the suburb from January 1 to the end of July. This drop is 42 fewer sales compared to the same period last year. Supply also tumbled by 32.7 per cent to 105 new properties listed on allhomes.com.au from January 1 to the end of July. This is a drop of 51 fewer new sellers entering the market.

The decline in buyer and seller activity is a surprise considering activity levels across Canberra in general have lifted. Historically low interest rates have fuelled market activity, boosting buyer and seller confidence.

Ngunnawal appeals to young families and couples looking to purchase a property that has outside space, of which the majority of sales over the year-to-date offered. The suburb has a mix of property types but sales mainly consisted of detached family homes and townhouses.

According to the latest Allhomes data, townhouse prices improved by 3.79 per cent to reach a median sale price of $364,300 based on sales from January 1 to the end of July. House prices bucked the Territory trend and softened by 1.35 per cent to reach a median sale price of $438,000 based on sales from January 1 to the end of July.

Ngunnawal offers a lower entry point that often attracts the first time buyer. The median price of a house in Ngunnawal sits vastly below Canberra’s current house price of $600,000. Buyers on an entry-level budget often look to Ngunnawal as the first step on the ladder. However, new figures released from the Australian Bureau of Statistics reveal this market sector has been shrinking. This could help to explain the dramatic fall in activity level.

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