Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Canberra's property market is included in our pack
Looking to understand what rents actually cost in Canberra right now?
We break down the latest rental prices, neighborhood trends, and landlord costs in Canberra as of the first half of 2026, and we keep this article constantly updated with fresh data.
Whether you're a tenant budgeting for a move or an investor sizing up yields, this guide gives you the real numbers.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Canberra.
Insights
- Canberra's vacancy rate sits around 1.6% to 1.9% in January 2026, which means landlords typically find tenants within three weeks, but renters face real competition for well-priced properties.
- A typical Canberra landlord pays roughly AUD 10,000 to 13,000 per year in rates, levies, and land tax combined, which can take a serious bite out of rental yields if you don't budget for it.
- Studio apartments in Canberra rent for about AUD 1,820 per month in January 2026, sitting roughly 20% to 30% below one-bedroom prices because of the city's strong preference for larger units.
- Rent growth in Canberra has slowed to around 3% to 4% year-over-year in 2026, down from the double-digit surges seen a few years ago, as affordability limits what tenants can pay.
- Inner South and Inner North neighborhoods in Canberra consistently command the highest rents, driven by proximity to Parliament, the lake, and walkable lifestyle amenities.
- Families renting in Canberra often choose Belconnen, Gungahlin, or Woden to get more space for their money, trading inner-city access for extra bedrooms and school options.
- Furnished rentals in Canberra typically add a 15% to 25% premium over unfurnished, with most demand coming from expats and short-term government contractors in inner suburbs.
- Heating and cooling upgrades deliver strong ROI for Canberra landlords because tenants prioritize comfort and energy costs during the city's cold winters and warm summers.
What are typical rents in Canberra as of 2026?
What's the average monthly rent for a studio in Canberra as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Canberra is approximately AUD 1,820, which works out to around USD 1,180 or EUR 1,090.
That said, studio rents in Canberra realistically range from about AUD 1,500 to AUD 2,200 per month (USD 975 to 1,430 or EUR 900 to 1,320), depending on location and quality.
The main factors that cause studio rents to vary within Canberra are proximity to Civic and major employment hubs, the age and condition of the building, and whether the unit includes features like secure parking or air conditioning.
What's the average monthly rent for a 1-bedroom in Canberra as of 2026?
As of early 2026, the average monthly rent for a one-bedroom apartment in Canberra is approximately AUD 2,340, which equals roughly USD 1,520 or EUR 1,400.
Most one-bedroom apartments in Canberra rent within a range of AUD 1,900 to AUD 2,800 per month (USD 1,235 to 1,820 or EUR 1,140 to 1,680), with the spread depending largely on location and amenities.
The cheapest one-bedroom rents in Canberra tend to be in outer suburbs like Tuggeranong and parts of Belconnen, while the most expensive are in Inner North and Inner South neighborhoods close to Civic and the Parliamentary Triangle.
What's the average monthly rent for a 2-bedroom in Canberra as of 2026?
As of early 2026, the average monthly rent for a two-bedroom apartment in Canberra is approximately AUD 2,820, which translates to around USD 1,830 or EUR 1,690.
Two-bedroom apartments in Canberra realistically range from AUD 2,400 to AUD 3,400 per month (USD 1,560 to 2,210 or EUR 1,440 to 2,040), covering most of the market from basic units to premium stock.
The cheapest two-bedroom rents in Canberra are generally found in Tuggeranong, outer Belconnen, and parts of Gungahlin, while Inner South and Inner North suburbs near the lake and Civic command the highest prices.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Canberra.
What's the average rent per square meter in Canberra as of 2026?
As of early 2026, the average rent per square meter for apartments in Canberra is approximately AUD 40 to 45 per month, which equals roughly USD 26 to 29 or EUR 24 to 27.
Across different neighborhoods in Canberra, rent per square meter ranges from about AUD 30 in outer suburbs to AUD 55 or more in premium inner-city locations.
Compared to Sydney, where inner-city rents often exceed AUD 60 per square meter, Canberra sits in the mid-range among Australian capitals, though it remains pricier than cities like Adelaide or Perth.
Properties that push above Canberra's average rent per square meter typically feature modern finishes, high energy efficiency ratings, secure parking, and locations within walking distance of Civic or major employment centers.
How much have rents changed year-over-year in Canberra in 2026?
As of early 2026, rents in Canberra have increased by approximately 3% for houses and 4% for units compared to one year ago.
The main factors driving rent changes in Canberra this year are ongoing housing supply constraints combined with affordability limits that are starting to cap how much tenants can pay.
This year's rent growth in Canberra is noticeably slower than the double-digit increases seen in 2022 and 2023, reflecting a market that remains tight but is no longer surging.
What's the outlook for rent growth in Canberra in 2026?
As of early 2026, Canberra rents are projected to grow by approximately 2% to 5% over the coming year, reflecting a "still tight but calmer" market.
The key factors likely to influence Canberra's rent growth in 2026 are persistent housing supply shortages that keep upward pressure on rents, balanced against stretched household budgets and interest rate settings that limit how much tenants can afford.
Inner North and Inner South neighborhoods near Civic and the Parliamentary Triangle are expected to see the strongest rent growth in Canberra, driven by continued demand from government professionals and limited new supply.
The main risks that could cause Canberra's rent growth to differ from projections include unexpected interest rate changes, shifts in public sector employment, or a faster-than-expected increase in new housing completions.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Canberra as of 2026?
Which neighborhoods have the highest rents in Canberra as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Canberra are Inner South (around AUD 3,200 per month or USD 2,080/EUR 1,920), Inner North (around AUD 3,000 per month or USD 1,950/EUR 1,800), and premium lake-adjacent suburbs (around AUD 3,500 per month or USD 2,275/EUR 2,100 for houses).
These Canberra neighborhoods command premium rents because they offer proximity to the Parliamentary Triangle, Lake Burley Griffin, diplomatic precincts, and walkable lifestyle amenities with limited housing supply.
The tenant profile that typically rents in these high-rent Canberra neighborhoods includes senior government officials, diplomats, well-paid professionals, and higher-income expats who prioritize location and quality over budget.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Canberra.
Where do young professionals prefer to rent in Canberra right now?
The three neighborhoods where young professionals prefer to rent in Canberra are Braddon and surrounds in the Inner North, New Acton near Civic, and Dickson with its town center amenities.
Young professionals in these Canberra neighborhoods typically pay between AUD 2,200 and AUD 2,800 per month (USD 1,430 to 1,820 or EUR 1,320 to 1,680) for a one-bedroom or small two-bedroom apartment.
The specific amenities that attract young professionals to these Canberra neighborhoods include walkable access to bars, cafes, gyms, and short commutes to major government and private sector employers.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Canberra.
Where do families prefer to rent in Canberra right now?
The three neighborhoods where families prefer to rent in Canberra are Belconnen (particularly Florey and Kaleen), Gungahlin (Harrison and Franklin areas), and Woden/Weston Creek suburbs like Holder and Stirling.
Families renting two-to-three bedroom homes in these Canberra neighborhoods typically pay between AUD 2,600 and AUD 3,400 per month (USD 1,690 to 2,210 or EUR 1,560 to 2,040), which buys more space than inner-city alternatives.
The features that make these Canberra neighborhoods attractive to families include larger homes with yards, good public and private schools nearby, parks and recreational facilities, and easier parking for multiple vehicles.
Top-rated schools near these family-friendly Canberra neighborhoods include Canberra Grammar, St Clare's College, and highly regarded public schools in the Belconnen and Gungahlin networks.
Which areas near transit or universities rent faster in Canberra in 2026?
As of early 2026, the three areas near transit hubs or universities that rent fastest in Canberra are suburbs near the Australian National University, areas along the light rail corridor to Gungahlin, and neighborhoods around the University of Canberra in Belconnen.
Properties in these high-demand Canberra areas typically stay listed for just 10 to 18 days on average, compared to the citywide average of 18 to 24 days.
The rent premium for properties within walking distance of transit or universities in Canberra typically adds AUD 80 to 150 per week (USD 50 to 100 or EUR 48 to 90) compared to similar units farther away.
Which neighborhoods are most popular with expats in Canberra right now?
The three neighborhoods most popular with expats in Canberra are Yarralumla (near embassies), Deakin in the Inner South, and Kingston Foreshore with its waterfront dining and apartments.
Expats renting in these Canberra neighborhoods typically pay between AUD 3,000 and AUD 4,200 per month (USD 1,950 to 2,730 or EUR 1,800 to 2,520) for well-appointed two-bedroom apartments or small houses.
The features that make these neighborhoods attractive to expats in Canberra include short commutes to diplomatic missions and government offices, higher availability of furnished rentals, premium housing stock, and proximity to international schools.
The nationalities most represented in these Canberra expat neighborhoods include American, British, European Union, and Asian diplomats and professionals working in embassies, trade offices, and international organizations.
And if you are also an expat, you may want to read our exhaustive guide for expats in Canberra.
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Who rents, and what do tenants want in Canberra right now?
What tenant profiles dominate rentals in Canberra?
The three tenant profiles that dominate Canberra's rental market are government and adjacent-sector professionals, students and early-career renters, and families renting houses.
Government professionals represent roughly 40% to 50% of Canberra's rental demand, students and young workers account for around 25% to 30%, and families seeking houses make up the remaining 20% to 30%.
Government professionals in Canberra typically seek well-located one-to-two bedroom apartments near Civic, students prioritize affordable units near universities and transit, and families look for three-to-four bedroom houses in suburban areas with schools nearby.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Canberra.
Do tenants prefer furnished or unfurnished in Canberra?
In Canberra, approximately 80% to 85% of tenants prefer unfurnished rentals for standard long-term leases, while 15% to 20% seek furnished options, primarily for shorter stays.
Furnished apartments in Canberra typically command a rent premium of AUD 300 to 500 per month (USD 195 to 325 or EUR 180 to 300) compared to equivalent unfurnished properties.
The tenant profiles that prefer furnished rentals in Canberra are primarily expats on diplomatic postings, government contractors on short-term assignments, and professionals relocating temporarily who want to avoid the hassle of buying furniture.
Which amenities increase rent the most in Canberra?
The five amenities that increase rent the most in Canberra are efficient heating and cooling systems, secure parking spaces, quality storage and functional layouts, pet-friendly policies, and modern kitchen and bathroom finishes.
In Canberra, efficient heating and cooling can add AUD 40 to 80 per week (USD 26 to 52 or EUR 24 to 48), secure parking adds AUD 30 to 60 per week (USD 20 to 39 or EUR 18 to 36), pet-friendly rentals command a premium of AUD 20 to 50 per week (USD 13 to 33 or EUR 12 to 30), and modern finishes can add AUD 50 to 100 per week (USD 33 to 65 or EUR 30 to 60).
In our property pack covering the real estate market in Canberra, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Canberra?
The five renovations that deliver the best ROI for Canberra rental properties are durable flooring and fresh paint, heating and cooling upgrades, kitchen refreshes (fixtures, lighting, tapware), bathroom updates without full gut renovations, and improved energy efficiency features.
In Canberra, flooring and paint typically cost AUD 3,000 to 8,000 (USD 1,950 to 5,200 or EUR 1,800 to 4,800) and can increase rent by AUD 20 to 40 per week, heating and cooling upgrades cost AUD 2,000 to 6,000 (USD 1,300 to 3,900 or EUR 1,200 to 3,600) and add AUD 30 to 50 per week, and kitchen or bathroom refreshes typically cost AUD 5,000 to 15,000 (USD 3,250 to 9,750 or EUR 3,000 to 9,000) while adding AUD 40 to 80 per week.
Renovations that tend to deliver poor ROI and should be avoided by Canberra landlords include luxury finishes that exceed neighborhood standards, swimming pool installations, and over-customized designs that limit tenant appeal.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Canberra as of 2026?
What's the vacancy rate for rentals in Canberra as of 2026?
As of early 2026, the vacancy rate for rental properties in Canberra is approximately 1.6% to 1.9%, which indicates a tight market that favors landlords.
Across different Canberra neighborhoods, vacancy rates range from below 1% in high-demand inner suburbs to around 2.5% in some outer areas with newer apartment supply.
Canberra's current vacancy rate remains below the historical average of roughly 2% to 2.5%, reflecting ongoing supply constraints that have persisted since 2021.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Canberra.
How many days do rentals stay listed in Canberra as of 2026?
As of early 2026, rental properties in Canberra stay listed for an average of 18 to 24 days before being leased, with well-priced properties often going faster.
Across different property types and neighborhoods in Canberra, days on market range from under two weeks for popular inner-city apartments to over four weeks for houses in outer suburbs or properties priced above market rates.
Canberra's current days-on-market figure is roughly similar to one year ago, reflecting a rental market that remains consistently tight rather than dramatically tightening or loosening.
Which months have peak tenant demand in Canberra?
The peak months for tenant demand in Canberra are January and February, followed by a secondary peak in July.
The specific factors driving Canberra's seasonal demand patterns are the start of the calendar year when new jobs begin and leases turn over, plus university intake periods and mid-year employment movements in the public sector.
The months with the lowest tenant demand in Canberra are typically April through June and September through November, when fewer lease turnovers occur and seasonal job movements slow down.
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What will my monthly costs be in Canberra as of 2026?
What property taxes should landlords expect in Canberra as of 2026?
As of early 2026, landlords in Canberra should expect to pay approximately AUD 10,000 to 13,000 per year (USD 6,500 to 8,450 or EUR 6,000 to 7,800) in combined rates, levies, and land tax for a typical rental house.
Depending on property value and location, annual property taxes in Canberra can range from around AUD 5,000 for lower-value units to over AUD 20,000 for high-value houses in premium suburbs.
Property taxes in Canberra are calculated using the property's Average Unimproved Value (AUV), with fixed charges plus marginal rates applied for general rates, and a separate land tax schedule for investment properties that includes its own fixed charge and marginal component.
Please note that, in our property pack covering the real estate market in Canberra, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Canberra right now?
A realistic annual maintenance budget for a typical rental property in Canberra is approximately AUD 4,000 to 8,000 per year (USD 2,600 to 5,200 or EUR 2,400 to 4,800), based on a property valued around AUD 800,000.
Depending on property age and condition in Canberra, annual maintenance costs can range from AUD 2,500 for newer apartments in good condition to over AUD 12,000 for older houses requiring more frequent repairs.
Landlords in Canberra typically set aside between 0.5% and 1.0% of the property's value each year for maintenance, with an extra buffer for larger one-off expenses like hot water system replacements or appliance failures.
How much does landlord insurance cost in Canberra as of 2026?
As of early 2026, landlord insurance for a typical rental property in Canberra costs approximately AUD 500 to 800 per year (USD 325 to 520 or EUR 300 to 480) for apartments and AUD 600 to 1,000 per year (USD 390 to 650 or EUR 360 to 600) for houses.
Across Canberra, annual landlord insurance premiums realistically range from around AUD 300 for basic unit coverage to over AUD 1,200 for comprehensive house policies with higher coverage limits.
The factors that most influence landlord insurance premiums in Canberra specifically are the property's rebuild cost, the level of coverage selected, claims history, and whether the property is a house or apartment.
Key coverage types Canberra landlords should prioritize include building insurance, landlord liability protection, loss of rent coverage, and protection against malicious damage by tenants.
What utilities do landlords often pay in Canberra right now?
The utilities that Canberra landlords most commonly pay on behalf of tenants are water supply and fixed charges (depending on lease structure), while some landlords of furnished short-term rentals also cover internet.
Water fixed charges in Canberra typically cost landlords around AUD 50 to 80 per month (USD 33 to 52 or EUR 30 to 48), while internet for short-term furnished rentals adds approximately AUD 60 to 90 per month (USD 39 to 58 or EUR 36 to 54).
The common practice in Canberra is that tenants pay for electricity, gas (if connected), and day-to-day usage bills, while landlords cover fixed property charges that attach to ownership, such as rates and levies.
How is rental income taxed in Canberra as of 2026?
As of early 2026, rental income in Canberra (and across Australia) is taxed as part of the landlord's overall assessable income at their marginal tax rate, which ranges from 0% to 45% depending on total income.
The main deductions Canberra landlords can claim against rental income include loan interest, property management fees, insurance premiums, council rates and land tax, repairs and maintenance, and depreciation on eligible assets.
Common tax mistakes Canberra landlords should avoid include failing to properly apportion expenses for properties that were partially owner-occupied, incorrectly claiming capital improvements as immediate repairs, and not understanding the specific ACT land tax rules that differ from other states.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Canberra.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Canberra, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| ACT Revenue Office - Land Tax | It's the official ACT government body that sets and explains how land tax is calculated. | We used the fixed charge and marginal rate schedule to estimate typical annual land tax for rental properties. We also used it to explain why land tax can be a large cost item in Canberra. |
| ACT Revenue Office - Calculating Rates | It's the official source for how ACT general rates and key levies are computed. | We used the fixed charges and marginal valuation factors to build worked example estimates for annual rates. We also used it to keep our explanation simple and verifiable. |
| ACT Treasury - 2025-26 Cost of Living Budget Statement | It's an official ACT budget document that states what the government is charging and why. | We used the stated levy amounts (PFESL, Safer Families Levy) to anchor our total bill estimates. We also used it to explain what changed heading into 2026. |
| ACT Revenue Office - Safer Families Levy | It's the official page for the levy amount applied to ACT properties. | We used the 2025-26 levy amount to complete the rates and levies cost picture. We also used it to avoid relying on secondary commentary. |
| ACT Revenue Office - Rates Overview | It's the official hub page that explains what rates fund and who pays. | We used it to explain the difference between rates (all owners) and land tax (investors). We also used it to keep the responsibilities section accurate. |
| Australian Taxation Office - Residential Rental Properties | It's the primary regulator for how rental income and deductions work for Australian landlords. | We used it to summarize what rental income must be declared and what expenses are typically deductible. We also used it to keep our tax section conservative and compliant. |
| Domain - Rental Report September 2025 | Domain is a major Australian property data publisher with a consistent rental report methodology. | We used it to cross-check whether Canberra is in a "still rising" or "stabilizing" phase. We also used it to support our 2026 outlook narrative about slowing growth. |
| Domain - Rental Report June 2025 | It's the same established series, just a different quarter that helps confirm the trend line. | We used it as another checkpoint for Canberra rent levels in 2025. We also used it to triangulate against other providers instead of trusting a single dataset. |
| NAB - Canberra Property Market Insights September 2025 | NAB is a major bank, and this report clearly cites its underlying market data sources. | We used its Canberra median rents for houses and units as our main numeric anchor. We also used its vacancy rate discussion to size demand expectations. |
| Cotality (CoreLogic) - Quarterly Rental Review September 2025 | Cotality/CoreLogic is a long-running housing analytics provider with established indices and reporting. | We used it as a second index cross-check on rent growth and vacancy conditions. We also used it to keep our 2026 growth outlook grounded in supply and demand reality. |
| Reserve Bank of Australia - Statement on Monetary Policy November 2025 | It's Australia's central bank and the benchmark source for rates, inflation, and macro conditions. | We used it to explain the 2026 backdrop (interest rates, inflation, household budgets) that shapes how much rents can keep rising. We also used it to keep the outlook section realistic. |
| National Housing Supply and Affordability Council - State of the Housing System 2025 | It's a national, government-established council focused specifically on housing supply, demand, and affordability. | We used it to support the "why" behind rental pressure: not enough supply and strong demand. We also used it to frame 2026 as tight but not exploding like before. |
| ABC News - Coverage of Domain Rental Report | ABC is a major national outlet and it clearly attributes the numbers to Domain's report. | We used it as an accessible translation of Domain's findings for non-professional readers. We also used it to reinforce that rent growth is easing nationally, which matters for Canberra too. |
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