Is buying a property in Belconnen a good investment?

Last updated on December 20, 2023

Yes, the analysis of Canberra's property market is included in our pack

If you've experienced the scenic beauty and recreational opportunities of Belconnen, you might have contemplated making this picturesque Canberra district your peaceful and nature-rich home.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Australia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Belconnen?

Belconnen, a district in Canberra, has emerged as a highly sought-after location for property buyers, and there are several reasons why it stands out.

Firstly, Belconnen's unique attributes set it apart from other real estate markets. Its proximity to Lake Ginninderra adds a scenic charm, offering outdoor activities like walking, cycling, and picnicking, which is a significant draw for those who love a blend of urban and natural environments.

This feature is quite distinctive compared to many other areas in Canberra which may lack such extensive water-based recreational opportunities.

In comparison to other areas in Canberra, Belconnen boasts a well-developed infrastructure. It's home to a large shopping and commercial centre, providing residents with easy access to a wide range of amenities including shops, restaurants, and entertainment options.

This convenience is a key factor in its popularity, especially when compared to more suburban or rural areas of Canberra which might not have such comprehensive facilities.

Belconnen started gaining popularity as a property hotspot around the early 2000s. This surge in interest was driven by a combination of factors, including the development of the University of Canberra.

Increased government investment in infrastructure, and its relatively affordable housing compared to other central Canberra locations. These factors contributed to a steady rise in demand, making it a go-to choice for many property buyers.

Looking at the trends and considering the ongoing development in education, health, and retail sectors, it seems likely that Belconnen will continue to be a popular choice.

The ongoing development of the University of Canberra and the Canberra Institute of Technology (CIT) campus are key indicators of its sustained appeal, particularly for students, academic professionals, and investors.

Speaking of which, the kind of people attracted to Belconnen are diverse. It's a hub for students due to its educational institutions, young professionals and families are drawn by the balance of urban amenities and natural settings, and investors find the area appealing due to its growth potential and rental demand.

However, like any area, Belconnen has its weaknesses. One of the main concerns is the potential for overdevelopment, which could lead to issues like increased traffic congestion and strain on local services.

Additionally, while its distance from Canberra's central business district is an advantage for some, it can be a drawback for those who prefer to be in the heart of the city.

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Why is Belconnen a nice place to live?

Belconnen offers a lifestyle that many find appealing for various reasons.

The area is known for its balanced mix of urban living and natural beauty. The presence of Lake Ginninderra adds a unique charm, providing residents with opportunities for outdoor activities like cycling, jogging, and picnics.

This aspect of Belconnen's lifestyle is particularly attractive to those who appreciate having nature close to urban conveniences.

The culture in Belconnen is diverse and inclusive, partly due to the presence of educational institutions like the University of Canberra. This diversity is reflected in the various cultural events, eateries, and community activities in the area.

For expatriates, Belconnen offers a welcoming environment. The expat community, though not as large as in some other major cities, is vibrant and well-integrated, thanks to the inclusive nature of the local community and various international events hosted by the university and other organizations.

When it comes to the cost of living, Belconnen is somewhat varied. While it's generally more affordable than Canberra's central districts, prices for housing and daily expenses can still be significant, especially in areas closer to the lake or newer developments.

However, considering the amenities and quality of life offered, many find it a worthwhile investment.

Safety is a key consideration for anyone looking for a place to live, and Belconnen rates well in this regard. It is generally considered a safe area, with a strong sense of community and effective local policing.

In terms of amenities and facilities, Belconnen is well-equipped. For shopping and entertainment, Westfield Belconnen is a major hub, offering a wide range of stores and services. Educational facilities are top-notch, with the University of Canberra and Canberra Institute of Technology providing higher education options.

For families, there are several reputable schools like Belconnen High School and Hawker College. Healthcare is also accessible, with facilities like the Calvary Public Hospital and numerous clinics serving the community's needs.

Infrastructure quality in Belconnen is high, with well-maintained roads, reliable utilities, and excellent internet connectivity. These factors contribute significantly to the quality of life in the area.

Accessibility is another strong point for Belconnen. It's well connected to other parts of Canberra via major roads like the Gungahlin Drive Extension and Belconnen Way.

For those traveling further, Canberra Airport is accessible, though it requires a bit of a drive, being located on the other side of the city.

Public transportation in Belconnen is robust, with frequent bus services connecting to various parts of Canberra. The introduction of light rail in Canberra has also improved connectivity, although it currently doesn't extend directly into Belconnen.

Overall, Belconnen's mix of natural beauty, cultural diversity, quality amenities, and strong infrastructure make it a desirable place to live for a wide range of people, from students and young professionals to families and expatriates.

The area manages to strike a balance between a relaxed lifestyle and the convenience of urban living, making it an attractive choice for those looking to settle in Canberra.

How much does it cost to buy real estate in Belconnen?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Australia.

Buying a property in Belconnen presents a range of options and factors to consider, the area offers various types of residential properties, including apartments, townhouses, and standalone houses.

Lately, there's been a trend towards apartment living, especially among students, young professionals, and downsizers, due to the proximity to the University of Canberra and the central business district. These apartments, particularly those offering modern amenities and close to Lake Ginninderra, are in high demand.

Regarding the market composition, Belconnen has a mix of new developments and resale properties. New developments are mainly focused on apartments and townhouses, catering to the growing demand for modern, low-maintenance living spaces.

These new developments often come with amenities like gyms, pools, and communal areas, making them attractive to a younger demographic and investors.

The price range for properties in Belconnen varies significantly based on factors like property type, location, and size. The price per square meter for apartments in Belconnen generally ranges from AUD 4,000 to AUD 6,000.

Houses, given their larger size and land value, can be significantly more expensive, these prices are subject to change based on market dynamics.

Over recent years, property values in Belconnen have seen a gradual increase. This trend has been influenced by the overall growth of Canberra, improvements in infrastructure, and the area's growing appeal as a residential and educational hub.

The ongoing development of the University of Canberra and various commercial projects have also contributed to this upward trend.

Looking ahead, there are several factors and potential developments that could impact property values in Belconnen. Plans for further expansion of the university and additional commercial and retail developments could increase the area's appeal, potentially driving up property values.

Moreover, any changes in city planning that improve connectivity to other parts of Canberra, like enhanced public transport options, would also positively affect property prices.

Predicting the real estate market's future can be complex, but Belconnen's market shows potential for growth. Factors like continued infrastructure development, the area's growing reputation as an educational and lifestyle hub, and the general trend towards urban living suggest that property values in Belconnen could continue to rise.

For potential buyers or investors, the specific factors indicating a potential increase in value include the area's ongoing development, the presence of key amenities like education and healthcare facilities, and the overall growth trajectory of Canberra.

These elements make Belconnen an appealing option for those looking to invest in property, with the expectation of value appreciation over time.

Where is the best area to buy a property in Belconnen?

When considering the best area to buy a property in Belconnen it's important to understand that Belconnen is not a one-size-fits-all market.

Different parts of Belconnen offer varied atmospheres, property types, and prices, catering to a diverse range of preferences and budgets.

One of the most sought-after areas in Belconnen is around Lake Ginninderra. This area is known for its scenic beauty and recreational opportunities, making it ideal for those who enjoy outdoor activities and a serene environment.

Properties here are mostly modern apartments, offering beautiful lake views. Due to the location and amenities, these properties are on the higher end of the price spectrum.

Another notable area is the Belconnen Town Centre. This area is perfect for those who prefer a more urban lifestyle. It's home to a large shopping centre, numerous restaurants, and entertainment options.

The property types here are predominantly apartments, including new developments that cater to professionals and small families. The convenience of living in the town centre comes at a premium, but many find the lifestyle worth the cost.

For buyers looking for more affordable options, suburbs like Florey, Evatt, and McKellar offer a different vibe. These areas are more suburban, featuring predominantly standalone houses and townhouses. They are ideal for families or those looking for more space and a quieter environment.

While these areas may lack the immediate proximity to the lake or the town centre's bustle, they offer a more relaxed lifestyle at a relatively lower price point.

In terms of up-and-coming areas within Belconnen, the suburb of Lawson has been gaining attention. It’s a relatively new suburb with modern housing developments.

Lawson is attracting a lot of interest due to its contemporary homes and proximity to both Belconnen and the University of Canberra.

Areas that are predominantly student-oriented, like those immediately surrounding the University of Canberra, might not be suitable for families or those looking for a quieter environment. The high turnover and busy atmosphere of student-heavy areas can be a drawback for some buyers.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Australia.

Area	Atmosphere	Property Types	Price Range
Lake Ginninderra	Scenic and recreational	Modern apartments	Higher end
Belconnen Town Centre	Urban and lively	Apartments	Mid to high
Florey, Evatt, McKellar	Suburban and relaxed	Standalone houses, townhouses	More affordable
Lawson	Modern and emerging	Contemporary homes	Varies
Near University of Canberra	Student-oriented, busy	Varied, often apartments	Depends on proximity to university

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Is there a strong rental demand in Belconnen?

In Belconnen there is indeed a strong demand for rental properties, this demand is shaped by several factors, including the area's educational institutions, infrastructure, and lifestyle options.

When it comes to the type of rentals in demand, both short-term and long-term rentals have their place in Belconnen.

However, the demand for long-term rentals is particularly strong, driven mainly by students and young professionals. The presence of the University of Canberra and the Canberra Institute of Technology means a steady influx of students who need accommodation, typically for the duration of their courses.

Additionally, young professionals working in Belconnen or nearby areas of Canberra also seek long-term rental options.

The target demographic for rentals in Belconnen is quite diverse. It includes university students, academic staff, healthcare professionals working at nearby hospitals, and government and private sector employees.

The profile of potential tenants usually involves individuals or small families who prioritize convenience and accessibility. They often look for properties that are close to educational institutions, workplaces, and amenities like shops and public transport.

In terms of property types, there is a particular interest in apartments and townhouses. These properties are favored for their low maintenance, security, and in many cases, additional amenities like gyms or pools.

Areas around Lake Ginninderra, the Belconnen Town Centre, and suburbs close to the university, like Bruce and Lawson, are particularly popular due to their proximity to key amenities and the balance they offer between urban and natural settings.

To reduce vacancy rates and attract tenants, landlords in Belconnen can focus on offering amenities that cater to the needs of their target demographic. Features like high-speed internet, modern appliances, secure parking, and access to public transport can be significant drawcards.

Additionally, properties that offer a balance of indoor and outdoor living spaces are highly valued, especially those with balconies or close to parks and recreational areas.

Regarding the potential returns on investment, properties in Belconnen can offer attractive yields, especially when managed well and targeted at the right tenant demographic.

While specific numbers can fluctuate based on market conditions, rental yields in Belconnen are generally competitive within the Canberra region. The presence of a steady rental market driven by the educational sector provides a level of stability to the investment.

Looking at the types of properties gaining more demand, modern, well-located apartments and townhouses seem to be at the forefront.

Their appeal lies in the combination of convenience, lifestyle, and ease of maintenance, making them increasingly popular among both tenants and investors.

These properties, especially those in strategic locations like near universities or major shopping centers, could potentially offer better yields due to their enduring appeal and the consistent demand they attract.

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Is it easy to buy a property as foreigner in Belconnen?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Australia.

Buying a property as a foreigner in Belconnen, Canberra, can be a straightforward process, but it's important to be aware of certain regulations and considerations unique to Australia.

Firstly, foreign buyers are subject to specific regulations in Australia. The Foreign Investment Review Board (FIRB) oversees these regulations.

As a foreigner, you are typically required to obtain FIRB approval before purchasing property in Australia. This process involves an application that assesses the type of property you intend to buy.

It's important to note that FIRB's rules are generally more lenient towards new properties or developments, as opposed to established residential properties, which may have stricter limitations.

When it comes to the purchasing process in Belconnen, it follows the standard Australian property buying process. This usually involves searching for a property, inspecting it, making an offer, and then going through the conveyancing process once your offer is accepted.

The conveyancing process, which involves the legal transfer of property ownership, is a critical stage where attention to detail is paramount.

There are several risks associated with property investment in Belconnen, as with any real estate investment. These include market risks like fluctuations in property values and rental yields, potential vacancy periods, and unexpected maintenance or repair costs.

A unique aspect of the Australian property market is the potential for changes in regulations, such as those related to property taxes or rental laws, which can impact your investment.

Common pitfalls for foreign buyers often involve a lack of understanding of the local market and regulatory environment.

For instance, underestimating additional costs like stamp duty, legal fees, and ongoing property management fees can impact your investment returns.

Another unique aspect in Australia is the emphasis on auctions as a method of sale. Navigating an auction can be challenging without a thorough understanding of the process and market values.

Working with a local real estate agent or lawyer is highly advisable. A local agent can provide valuable insights into the Belconnen property market, helping you find a property that meets your investment goals.

A lawyer, on the other hand, is essential for navigating the legal aspects of the purchase, including contract review, FIRB application, and conveyancing.

Regarding exit strategies, common approaches in Belconnen include selling the property for capital gain after a period of appreciation or holding the property long-term for rental income.

Some investors also look into renovating and flipping properties, although this requires a good understanding of the local market and construction costs.