Young investors and first-time purchasers are adopting a savvy new strategy to break into Canberra's most sought-after and expensive neighbourhoods. They are targeting the most affordable entry points: compact studio and one-bedroom apartments.
The strategy: Sacrificing space for location
For those determined to secure an inner-city lifestyle without a multi-million dollar budget, a smaller dwelling is becoming the perfect solution. This approach allows buyers to get their foot in the door of prestigious suburbs where median house prices often exceed $2 million.
Real estate agents report strong interest from both investors seeking high rental yields and first home buyers unwilling to compromise on location. Steven Thompson from LJ Hooker noted that cheap homes in premium suburbs are particularly appealing for building equity and securing a position in a desirable market.
Affordable opportunities in blue-chip postcodes
The trend is highlighted by several current listings that offer rare affordability in exclusive areas.
In Griffith, where the median apartment value sits above $600,000, a 20-square-metre studio at 28/47 McMillan Crescent is listed for just $198,000. Mr Thompson described a sub-$200,000 price tag in Griffith as "virtually unheard of." The unit is currently tenanted at $313 per week, offering investors a high yield that can offset concerns about land tax and rates. The building features a pool and is within walking distance of Fyshwick Markets and Manuka shops.
Another unit in the same complex, Unit 36, is on the market with a price guide of $239,000.
In Red Hill, where the median apartment sells for $893,075, a one-bedroom apartment at 6/22 Discovery Street is listed from $399,000. The listing by Belle Property explicitly markets it as "an affordable entry into a blue-chip postcode." The 37-square-metre apartment includes a built-in bookshelf, undercover parking, and storage, placing its owner close to the city centre, Manuka, and Kingston.
Modern living in Yarralumla without the premium
At a higher price point, a modern one-bedroom apartment at 4/43 Hampton Circuit, Yarralumla, is listed for $585,000. While this may seem steep for a single bedroom, it represents a significant discount in a suburb where the median apartment sells for over $1.2 million. The next cheapest listing in Yarralumla is currently a two-bedroom penthouse for $999,900.
Jason Roses from Verv said such listings attract young couples seeking a central location. "They get the benefits of living in the inner south... without the price tag," he explained. The apartment offers two private outdoor areas, natural light, and modern appliances.
This trend underscores a shifting dynamic in the ACT property market, where strategic compromises on space are enabling a new generation to access the lifestyle and long-term advantages of Canberra's most prestigious addresses.
