The capital city of Australia is Canberra, with a population of over 3,45,000. Canberra is part of the Australian Capital Territory (ACT), located at the northern end. The city is situated about 280 kilometres south-west of Sydney and 660 kilometres north – east of Melbourne. In 1908, the rivalry between two of Australia’s largest cities, Sydney and Melbourne to be chosen as the capital of Australia, brought forward a unique solution. As a compromise, Canberra was chosen to be the capital of Australia. The city had to be completely planned and designed.
The city is close to the Brindabella Ranges and includes many mountains like Mount Majura, Mount Taylor, Mount Ainslie, Mount Mugga Mugga and Black Mountain. The flow of water of the Molonglo River has been restricted by the creation of a dam, Lake Burley Griffin. The dam has become a national iconic feature. The area is favourable for eucalyptus species of trees.
Summers in Canberra are mostly dry and range from warm to hot weather and winters are characterized by cool to cold weather. Canberra experiences a dry continental climate, although winters are chilly, due to frequent frosts and heavy fog. The area also witnesses thunderstorms in the months between October and April.
The residents of Canberra enjoy high employment rates, due to increased opportunities in public sector and commercial enterprises. The citizens enjoy high levels of disposable incomes, compared to the national average. The gross average weekly wage in Canberra is $1,392, much higher than the national average of $1,223.30.
The economy of Canberra is centred on government administration and defence, being the country’s capital city. Employing over 40% of Canberra’s workforce, both of these accounted for 31% of Gross Territory Product in 2008–09. The Australian Defence Force has set up many establishments in and around Canberra. It includes HMAS Harman and the headquarters of the Australian Defence Force. HMAS Harman, a naval communications centre, is being converted into a multi-user, tri-service depot. Many independent software vendors have capitalized on the presence of many government customers in Canberra. Software vendors like Tower Software and RuleBurst are operating from the city and providing software services. There are plans for creating a billion-dollar data hub in Canberra through a public and private partnership. The aim is to make Canberra an attractive destination for such services in the Asia-Pacific region.
The unemployment rate in Canberra was 3.9% in early 2010, much lower than the national unemployment rate of 5.3%. Canberra residents have to pay much higher rents, compared to other states and territories in Australia. In September 2009, the median house price in Canberra was $511,820 and has increased since then. Since 2005, it has surpassed Perth and Melbourne in the rates of housing. Among capital cities of more than 100,000 people, Sydney ranks higher than Canberra in the median house pricing. In the March quarter of 2009, Canberra residents paid the third highest median rent of $420 in the country. There are many factors which contribute to the increase in rent paid by residents in Canberra. It includes restricted land supply, higher average weekly incomes and inflationary clauses in the ACT Residential Tenancies Act.