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Yes, the analysis of Canberra's property market is included in our pack
Canberra's rental market stands as one of Australia's most expensive, with average weekly rents reaching $774 for houses and $582 for apartments as of September 2025. The capital city's strong government employment base, prestigious universities, and low vacancy rates of just 1.2-2.0% create a competitive rental environment that favors landlords and offers solid investment opportunities, particularly in the unit market where yields can reach up to 7% in suburbs like Hawker.
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As of September 2025, Canberra's rental market shows houses averaging $774 per week and apartments at $582 per week, with the combined median reaching $669 weekly.
Investment yields favor apartments at around 5% compared to houses at 3.6%, while short-term rentals can achieve $188 per night with 53% occupancy rates.
| Property Type | Average Weekly Rent | Typical Yield | Best Suburbs |
|---|---|---|---|
| Houses (3-bedroom) | $717-$774 | 3.6-4.4% | Belconnen, Tuggeranong |
| Apartments (2-bedroom) | $591 | 5.0-7.1% | Hawker, City |
| Townhouses | $520-$650 | 4.0-5.5% | Gungahlin, Braddon |
| Short-term Rentals | $188/night | Variable | City, Braddon, Kingston |
| Studio/1-bedroom | $450-$550 | 5.5-6.5% | City, Acton |
What's the current average rent in Canberra right now?
As of September 2025, Canberra's rental market shows a clear divide between property types with houses commanding significantly higher rents than apartments.
Houses in Canberra average $774 per week across all bedroom configurations, while three-bedroom houses specifically rent for $717 per week. This positions Canberra as one of Australia's most expensive rental markets after Sydney and Melbourne.
Apartments and units achieve lower but still substantial weekly rents, averaging $582 across all configurations and $591 for two-bedroom units specifically. The combined median rent across all property types reaches $669 per week, reflecting the capital city's premium positioning in the Australian rental market.
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How does the rent differ between apartments, townhouses, and standalone houses?
The rental hierarchy in Canberra follows a clear pattern with standalone houses commanding the highest rents, followed by townhouses, and apartments offering the most affordable options.
Standalone houses typically rent between $700-$774 per week, with premium suburbs and larger homes with better amenities pushing rents toward the upper end of this range. Three-bedroom houses represent the market standard at $717 per week, while larger four-bedroom properties can exceed $900 per week in desirable locations.
Townhouses occupy the middle ground, generally aligning with apartment pricing but varying significantly based on location and size. In suburbs like Gungahlin, two-bedroom townhouses rent for approximately $520 per week, while newer developments or better-located properties can reach $650-$700 per week.
Apartments and units offer the most affordable rental option at $565-$582 per week median, but this category also provides the highest investment yields. Two-bedroom units at $591 per week represent the sweet spot for both tenants and investors, offering reasonable space at competitive pricing.
What are the average rents in different neighborhoods of Canberra?
| Suburb | Houses (Weekly) | Apartments (Weekly) | House Yield | Apartment Yield |
|---|---|---|---|---|
| Belconnen | $549 | $550 | 4.4% | 6.1% |
| Tuggeranong | $650-$700 | - | ~4% | - |
| City | - | $650 | - | 6.3% |
| Hawker | - | $498 | - | 7.1% |
| Red Hill | - | $870 | - | 6.3% |
| Braddon | - | $613 | - | 5.5% |
| Gilmore | $700 | - | 4.3% | - |
How does the rent change depending on the size and surface area of the property?
Property size directly correlates with rental pricing in Canberra, with larger homes commanding proportionally higher rents across all property types.
For houses, three-bedroom properties represent the market standard at $717-$730 per week, while larger four and five-bedroom homes in family-oriented suburbs can reach $900-$1,200 per week. The price per room averages $250 weekly for houses, making larger properties relatively cost-effective for families or shared living arrangements.
Apartments show a more compressed pricing structure, with two-bedroom units at the median $591 per week and one-bedroom units typically ranging $450-$550 per week. Studios and one-bedroom apartments average $348 per room weekly, making them significantly more expensive per square meter than houses.
Surface area plays a crucial role beyond bedroom count, with properties featuring outdoor space, parking, and larger living areas commanding premium rents. Houses with gardens, garages, and entertaining areas can achieve 15-20% higher rents than comparable properties without these features.
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What are the typical extra costs, like fees, taxes, and property management charges, that come on top of rent?
Property management fees represent the largest ongoing cost for rental property owners, typically ranging from 6-8% of weekly rental income in Canberra.
Letting fees occur when finding new tenants and typically cost 1-2 weeks' rent, while additional management services including annual statements, property inspections, and advertising can add $200-$500 annually. Maintenance coordination and emergency call-out services may incur additional fees of $50-$100 per incident.
Property taxes include council rates ranging from $700-$1,500 annually depending on property value and location, plus land tax for investors which varies based on total land holdings. These costs are typically passed through to tenants via increased rent or charged separately.
Utilities represent additional costs for tenants, including electricity ($300-$600 quarterly), water usage charges, and internet connections ($60-$100 monthly). Some landlords include water supply charges but usage typically remains the tenant's responsibility.
If I have a mortgage, what would the monthly repayment look like compared to the rental income?
Mortgage repayments typically exceed rental income in Canberra's current market, creating negative gearing scenarios for most investment properties.
For an average house valued at $942,000 with a $750,000 mortgage at 5.5% interest over 30 years, monthly repayments reach approximately $4,270 ($985 weekly). With average house rent at $650 weekly, this creates a $335 weekly shortfall before considering management fees and maintenance costs.
Apartment investments show better cash flow dynamics, with average unit values around $580,000 requiring smaller mortgages. A $450,000 mortgage at similar rates costs approximately $2,560 monthly ($590 weekly), closely matching the $565 weekly median apartment rent before expenses.
Investors typically rely on negative gearing tax benefits, capital growth expectations, and rental increases over time to justify the initial cash flow deficit. The shortfall often narrows within 3-5 years through rental growth and mortgage principal reduction.
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What are the best options if I want to rent short term versus long term?
Short-term rental options in Canberra center on Airbnb and corporate accommodation, averaging $188 per night with typical occupancy rates of 53%.
Short-term rentals perform best in central suburbs including City, Braddon, and Kingston, where proximity to government offices, Australian National University, and tourist attractions drives demand. Properties allowing stays of 1-2 nights capture business travelers, while 24% of listings accommodate monthly stays at discounted rates.
Long-term rentals offer more predictable income streams with standard lease terms of 6-12 months, lower vacancy risk, and reduced management complexity. Traditional rentals avoid the intensive cleaning, guest communication, and regulatory compliance required for short-term operations.
The break-even point typically favors short-term rentals in premium locations with occupancy above 60%, while outer suburbs and family-oriented properties perform better as long-term rentals. Corporate accommodation represents a hybrid option, offering premium rates for extended stays of 1-6 months.
Can you give me concrete examples of rental prices for different types of properties in Canberra?
| Property Type | Location | Weekly Rent | Annual Rent | Yield Estimate |
|---|---|---|---|---|
| 2-bedroom Apartment | City | $650 | $33,800 | 6.3% |
| 3-bedroom House | Tuggeranong | $700 | $36,400 | 4.0% |
| 1-bedroom Unit | Hawker | $498 | $25,896 | 7.1% |
| 2-bedroom Townhouse | Gungahlin | $520 | $27,040 | 4.8% |
| Studio Apartment | Braddon | $450 | $23,400 | 6.2% |
| 4-bedroom House | Belconnen | $800 | $41,600 | 4.2% |
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Who are the typical renters in Canberra right now, and what profiles are most common?
Canberra's rental market attracts a diverse mix of government employees, university students, young professionals, and families, each gravitating toward specific suburbs and property types.
Government workers represent the largest tenant demographic, seeking proximity to central business districts and Parliament House. These renters typically prefer apartments and townhouses in inner suburbs like City, Braddon, and Barton, prioritizing convenience over space and willing to pay premium rents for reduced commute times.
University students, particularly from Australian National University and University of Canberra, create strong demand for affordable accommodation near campuses. Students typically seek shared housing arrangements, one-bedroom units, or purpose-built student accommodation in suburbs like Acton, Turner, and areas with good public transport links.
Young professionals and families represent growing segments, with families preferring suburban locations like Tuggeranong, Belconnen, and Gungahlin that offer larger properties, schools, and family amenities. Shared living arrangements are increasingly common as renters offset high costs through roommate arrangements.
What do the current vacancy rates look like across property types and areas?
Canberra maintains extremely tight vacancy rates between 1.2-2.0% as of September 2025, significantly below the 3% threshold considered balanced between tenant and landlord interests.
Central suburbs including City, Braddon, and Barton show the lowest vacancy rates, often below 1%, driven by strong government employment and limited new supply. These areas favor landlords with minimal time between tenancies and strong rental growth prospects.
Outer suburbs including parts of Tuggeranong and Gungahlin experience slightly higher vacancy rates around 2%, though still well below historic averages. New apartment developments in these areas provide additional supply, giving tenants marginally more choice while maintaining landlord-favorable conditions.
Units and apartments show marginally higher vacancy rates than houses as new supply enters the market, though the difference remains minimal. Short-term rental properties achieve 53% occupancy rates on average, reflecting seasonal and business travel fluctuations.
Which types of properties or areas offer the smartest investment choices today in terms of yield?
Apartments and units consistently deliver the highest rental yields in Canberra, with some suburbs achieving returns up to 7.1% compared to houses averaging 3.6-4.4%.
Hawker stands out with exceptional apartment yields of 7.1% at $498 weekly rent, while Belconnen offers balanced returns of 6.1% for units and 4.4% for houses. City apartments provide strong yields of 6.3% combined with capital growth potential, making them attractive for total return strategies.
Growth suburbs including Gungahlin, Belconnen, and parts of Tuggeranong offer the best combination of yields and capital appreciation prospects. These areas benefit from young professional populations, infrastructure development, and population growth driving both rental demand and property values.
New apartment developments in outer suburbs provide opportunities for higher yields and depreciation benefits, though investors should consider potential oversupply risks. Established inner-suburb units offer lower yields but stronger capital growth and more stable tenant demand.
It's something we develop in our Australia property pack.
How have rents and yields changed compared to one year ago and five years ago, and what's the forecast for one year, five years, and ten years ahead, including how Canberra compares with other similar big cities?
Canberra's rental market has shown mixed performance over recent periods, with apartments outperforming houses in the past year while maintaining strong long-term growth.
Over the past year, combined rents increased 1.5%, though this masks divergent trends with house rents declining 0.8% while unit rents surged 4.4%. This reflects increased apartment supply and shifting tenant preferences toward more affordable options amid rising living costs.
Five-year growth tells a different story, with national rental markets rising 42.7% while Canberra achieved more moderate 14-15% growth. Ten-year data shows Canberra rents climbing approximately 48%, demonstrating steady but not excessive growth compared to other capitals.
Forecasts suggest continued modest growth of 0-3% annually over the next 1-2 years, with apartments likely outperforming houses due to affordability pressures and new supply. Five to ten-year projections remain positive based on steady government employment, university enrollment, and planned infrastructure development.
Compared to other major Australian cities, Canberra ranks as the second-most expensive rental market after Sydney, though with slower growth rates. This positions Canberra as a mature, stable market offering reasonable yields with lower volatility than more speculative markets like Melbourne or Perth.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Canberra's rental market offers compelling opportunities for both investors and tenants, with apartments providing superior yields and houses delivering stronger capital growth potential.
The combination of stable government employment, prestigious universities, and controlled supply creates a resilient rental market that consistently outperforms many other Australian cities in terms of stability and long-term returns.
Sources
- Property Update - Rental Vacancy Rates
- SQM Research - Canberra Weekly Rents
- Rent.com.au - Rental Market Snapshot
- Domain - Rental Report March 2025
- Savings.com.au - Highest Rental Yields ACT
- The RiotACT - Canberra Rents Rising
- Loan Market - Investment Property Canberra
- Which Real Estate Agent - Property Management Fees