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
Yes, you can legally rent out a property in Canberra as a foreigner, but purchasing is heavily restricted in early 2026 due to a temporary ban on foreign buyers acquiring established homes.
This guide breaks down every practical detail you need to know, from realistic rental yields and monthly rents to vacancy rates, tenant preferences, and short-term rental regulations specific to Canberra.
We constantly update this blog post to reflect the latest data and regulatory changes in the Canberra property market.
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 units deliver around 5% gross yield in 2026, nearly 60% higher than the 3.2% gross yield for houses, making apartments the better choice for yield-focused foreign investors.
- The ACT's 1.5% vacancy rate means Canberra landlords can realistically budget for only 2 to 4 weeks of vacancy per year, one of the tightest rental markets in Australia.
- Foreign buyers face a temporary ban on established dwellings until March 2027, effectively limiting overseas investors to new-build apartments or house-and-land packages in Canberra.
- A 2-bedroom unit in Canberra rents for around A$595 per week (roughly A$2,575 monthly), but after rates, land tax, and management fees, net yield drops to approximately 3.3%.
- Short-term rentals in Canberra average 60% occupancy at A$130 per night, but the new 5% ACT levy on bookings and strata restrictions can significantly eat into profits.
- Belconnen and Gungahlin consistently appear in CoreLogic's highest-yield suburb lists for the ACT, thanks to lower purchase prices combined with strong tenant demand from university and government workers.
- Furnished 1 to 2 bedroom units in Canberra's Inner North and Inner South rent faster due to high demand from visiting public servants, defense postings, and short-term contractors.
- ACT rent increases are legally limited to once every 12 months, and landlords must follow a formal process, making Canberra more regulated than most other Australian cities for long-term rentals.
Can I legally rent out a property in Canberra as a foreigner right now?
Can a foreigner own-and-rent a residential property in Canberra in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Canberra, but purchasing is the challenging part because Australia's foreign investment rules strongly favor new dwellings over existing homes.
The most common ownership structure for foreign investors in Canberra is direct ownership of a new apartment or house-and-land package, which typically requires approval from the Foreign Investment Review Board (FIRB) before settlement.
However, the single biggest restriction right now is a temporary ban running from April 2025 to March 2027 that prevents most foreigners from even applying to buy established (existing) dwellings in Canberra, leaving new-build properties as essentially the only legal pathway.
If you're not a local, you might want to read our guide to foreign property ownership in Canberra.
Do I need residency to rent out in Canberra right now?
You do not need to live in Canberra or even in Australia to legally rent out a property there, and many Canberra landlords are actually interstate or overseas investors who manage everything remotely through local property managers.
That said, you will need an Australian tax file number or similar tax registration because the ATO requires all foreign residents earning Australian rental income to lodge tax returns and meet reporting obligations.
While Australian law does not strictly require a local bank account, in practice most property managers strongly recommend one because it makes rent collection, bill payments, and tax compliance significantly smoother and cheaper than international transfers.
Managing a Canberra rental remotely is entirely feasible and quite common, since the city has a mature property management ecosystem and your agent can handle tenant selection, rent collection, maintenance, and bond lodgement on your behalf.
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What rental strategy makes the most money in Canberra in 2026?
Is long-term renting more profitable than short-term in Canberra in 2026?
As of early 2026, long-term renting in Canberra generally delivers more predictable and stable net returns, while short-term renting can produce higher gross income but comes with greater volatility and operating costs.
For a typical 2-bedroom unit in Canberra, a long-term rental might generate around A$31,000 per year (roughly US$20,000 or €18,500), whereas a well-managed short-term rental at 60% occupancy and A$130 per night could gross around A$28,500 annually (roughly US$18,500 or €17,100), but with higher cleaning, management, and turnover expenses eating into the difference.
Short-term renting tends to outperform financially in high-demand inner locations like Braddon, Kingston Foreshore, and the CBD, where business travelers, visiting public servants, and event attendees are willing to pay premium nightly rates for well-presented, professionally managed properties.
What's the average gross rental yield in Canberra in 2026?
As of early 2026, the average gross rental yield in Canberra sits at approximately 4% for a blended investor portfolio, with houses averaging around 3.2% and units averaging closer to 5%.
The realistic gross yield range for most Canberra residential properties runs from about 2.8% for premium family homes in Inner South suburbs like Forrest or Yarralumla, up to around 5.5% for well-located units in high-demand corridors like Belconnen or Gungahlin.
Units and apartments consistently achieve the highest gross rental yields in Canberra because their lower purchase prices relative to weekly rents create a more favorable yield calculation than houses, which carry higher price tags without proportionally higher rents.
By the way, we have much more granular data about rental yields in our property pack about Canberra.
What's the realistic net rental yield after costs in Canberra in 2026?
As of early 2026, the realistic net rental yield in Canberra after all ongoing costs averages around 2.2% for houses and 3.3% for units, assuming you exclude mortgage financing from the calculation.
Most Canberra landlords experience net yields ranging from about 1.5% for high-value Inner South houses up to around 4% for efficiently managed units in town centre locations like Belconnen or Gungahlin.
The three main cost categories that drag gross yield down to net yield in Canberra are ACT rates combined with land tax (which can run A$300 to A$550 monthly for investment properties), strata levies for units (often A$150 to A$350 monthly), and property management fees that typically total 8% to 10% of rent when you include letting fees and inspection charges.
You might want to check our latest analysis about gross and net rental yields in Canberra.
What monthly rent can I get in Canberra in 2026?
As of early 2026, typical monthly rents in Canberra run approximately A$1,950 (US$1,270, €1,170) for a studio, A$2,250 (US$1,465, €1,350) for a 1-bedroom apartment, and A$2,575 (US$1,675, €1,545) for a 2-bedroom apartment in average-quality, well-located properties.
A decent studio in Canberra typically rents for A$1,750 to A$2,100 per month (US$1,140 to US$1,365, or €1,050 to €1,260), with the lower end in outer suburbs and the higher end in Inner North locations like Braddon or Turner.
A typical 1-bedroom apartment commands A$2,000 to A$2,500 per month (US$1,300 to US$1,625, or €1,200 to €1,500), depending on proximity to the CBD and whether the unit has parking and modern finishes.
A standard 2-bedroom apartment rents for A$2,400 to A$2,900 per month (US$1,560 to US$1,885, or €1,440 to €1,740) in most Canberra suburbs, with premium locations like Kingston Foreshore or Braddon pushing toward the higher end.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Canberra.
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.
What are the real numbers I should budget for renting out in Canberra in 2026?
What's the total "all-in" monthly cost to hold a rental in Canberra in 2026?
As of early 2026, the total all-in monthly cost to hold a typical 2-bedroom rental unit in Canberra (excluding mortgage payments) runs approximately A$1,100 to A$1,400 (US$715 to US$910, or €660 to €840), while a 3-bedroom house typically costs A$900 to A$1,200 per month (US$585 to US$780, or €540 to €720).
The realistic range for most standard Canberra rental properties spans from around A$700 per month for a modest unit with low strata fees, up to A$1,600 per month for a higher-value property with significant land tax exposure and comprehensive management services.
In Canberra specifically, the combination of ACT rates and land tax tends to be the single largest cost contributor, often accounting for 40% to 50% of total holding costs because the ACT's land tax applies to most investment properties and rates are calculated based on unimproved land value rather than flat fees.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Canberra.
What's the typical vacancy rate in Canberra in 2026?
As of early 2026, the typical vacancy rate for rental properties in Canberra sits at approximately 1.5%, which is considered tight by Australian standards and reflects strong ongoing demand from government workers, students, and defense personnel.
A Canberra landlord should realistically budget for 2 to 4 weeks of vacancy per year as a conservative planning assumption, since the low market-wide vacancy rate means most well-presented properties find tenants quickly, but tenant changeovers still create brief gaps.
The main factor causing vacancy rates to vary across Canberra neighborhoods is proximity to major employment hubs, with areas near Parliament House, defense facilities, and universities (like Barton, Campbell, and Bruce) experiencing even tighter vacancy than outer suburban growth corridors.
Tenant turnover in Canberra tends to peak around December through February when leases aligned with the academic and government fiscal year cycles come up for renewal, and again in June to July when budget-driven contract positions often end or renew.
We have a whole part covering the best rental strategies in our pack about buying a property in Canberra.
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Where do rentals perform best in Canberra in 2026?
Which neighborhoods have the highest long-term demand in Canberra in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Canberra are Belconnen (particularly around the town centre and Bruce), the Gungahlin corridor (including Harrison and Amaroo), and the Inner North suburbs of Braddon, Turner, and Dickson.
Families seeking long-term rentals in Canberra concentrate in established leafy suburbs like Curtin, Hughes, and Garran in the Woden Valley, as well as Inner South family areas like Deakin, Forrest, and Yarralumla where quality schools and quiet streets create strong demand.
Students generate the strongest rental demand near the Australian National University in suburbs like Turner, O'Connor, and Acton, as well as around the University of Canberra campus in Bruce, where shared houses and affordable units are highly sought after.
Expats and international professionals typically gravitate toward Canberra's Inner South diplomatic core including Yarralumla, Deakin, Griffith, and Barton, where proximity to embassies, government offices, and premium amenities matches their lifestyle expectations.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Canberra.
Which neighborhoods have the best yield in Canberra in 2026?
As of early 2026, the top three neighborhoods for rental yield in Canberra are Belconnen and Bruce (near the University of Canberra), Gungahlin and Harrison (in the northern growth corridor), and Greenway in the Tuggeranong town centre area.
These high-yielding Canberra neighborhoods typically deliver gross rental yields in the 4.5% to 5.5% range for well-located units, compared to the city-wide average of around 4% for a blended portfolio.
The main characteristic that allows these neighborhoods to achieve higher yields is their combination of relatively affordable purchase prices (often A$400,000 to A$550,000 for units) paired with strong rental demand from university students, young professionals, and government workers who need convenient commuter access but are priced out of inner suburbs.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Canberra.
Where do tenants pay the highest rents in Canberra in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Canberra are the Inner South prestige suburbs of Forrest, Red Hill, and Yarralumla, followed by premium Inner North locations like Braddon and Turner, and the lifestyle precinct of Kingston Foreshore.
In these premium Canberra neighborhoods, a standard 2-bedroom apartment typically rents for A$3,000 to A$4,000 per month (US$1,950 to US$2,600, or €1,800 to €2,400), while larger family homes can command A$5,000 or more monthly.
The defining characteristic that allows these neighborhoods to command Canberra's highest rents is their unmatched combination of walkable access to Parliament House and key government agencies, established tree-lined streetscapes, and proximity to Lake Burley Griffin, which creates a lifestyle proposition that cannot be replicated in newer suburbs.
The typical tenant profile in these highest-rent Canberra neighborhoods includes senior public servants and departmental executives, diplomats and embassy staff, visiting judges and barristers during court terms, and high-income professionals who prioritize location and prestige over value.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Canberra in 2026?
What features increase rent the most in Canberra in 2026?
As of early 2026, the three property features that increase monthly rent the most in Canberra are high-quality heating and cooling systems (Canberra winters are genuinely cold), secure parking with storage, and a dedicated second bedroom or home office space that accommodates the city's large hybrid-work population.
Effective climate control, particularly reverse-cycle air conditioning with good insulation, can add a 10% to 15% rent premium in Canberra because tenants know that poorly insulated properties lead to painful winter energy bills, making thermal comfort a genuine deal-breaker.
One commonly overrated feature in Canberra is high-end kitchen appliances and premium benchtops, which tenants appreciate visually but rarely pay significantly more for compared to simply having a functional, clean, modern kitchen with adequate storage.
An affordable upgrade that delivers strong returns in Canberra is installing quality window treatments like honeycomb blinds or thick curtains, which improve thermal efficiency, reduce tenant energy costs, and make the property feel more finished for a relatively modest investment of A$1,500 to A$3,000.
Do furnished rentals rent faster in Canberra in 2026?
As of early 2026, furnished rentals in Canberra typically rent 1 to 2 weeks faster than unfurnished equivalents, particularly for 1 to 2 bedroom apartments in Inner North and Inner South locations where visiting public servants, defense postings, and short-term contractors seek move-in-ready accommodation.
Furnished apartments in Canberra generally command a 15% to 25% rent premium over unfurnished equivalents, though landlords should factor in higher wear-and-tear, furniture replacement cycles, and potentially increased insurance premiums when calculating whether the premium justifies the extra investment and management effort.
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How regulated is long-term renting in Canberra right now?
Can I freely set rent prices in Canberra right now?
Landlords in Canberra can freely set the initial rent price when first leasing a property, with no government-mandated starting rent limits, meaning the market determines what tenants will pay based on location, condition, and demand.
However, once a tenant is in place, the ACT regulates rent increases more strictly than most Australian jurisdictions: landlords can only raise rent once every 12 months, must follow a formal process through the ACT's rent increase framework, and tenants can challenge increases they believe are excessive through the ACT Civil and Administrative Tribunal.
What's the standard lease length in Canberra right now?
The standard lease length for residential rentals in Canberra is typically 6 or 12 months for an initial fixed term, after which most leases automatically roll into a periodic (month-to-month) arrangement unless a new fixed term is negotiated.
In the ACT, landlords can legally require a security deposit (bond) of up to 4 weeks' rent, which for a typical 2-bedroom unit renting at A$595 per week means a maximum bond of approximately A$2,380 (US$1,550, €1,430).
At the end of a tenancy in Canberra, the bond must be returned within 14 days of the tenant vacating and keys being returned, with deductions only permitted for unpaid rent or damage beyond normal wear and tear, and all bonds must be lodged with and released through the ACT Revenue Office's official bond system rather than held privately by the landlord.
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.
How does short-term renting really work in Canberra in 2026?
Is Airbnb legal in Canberra right now?
Airbnb-style short-term rentals are legal in Canberra as of early 2026, and the ACT does not currently impose a territory-wide registration system or annual night cap like some other Australian jurisdictions.
While there is no general short-term rental license required in the ACT, the territory introduced a Short-Term Rental Accommodation Levy in 2025 that applies a 5% levy on bookings, which booking platforms like Airbnb typically collect automatically, though direct bookings may require the host to register and remit the levy themselves.
The ACT does not currently enforce annual night limits on short-term rentals at the territory level, but landlords must check their strata bylaws carefully because many apartment buildings have owners corporation rules that restrict or prohibit short-stay letting entirely.
The most common consequence for non-compliant short-term rentals in Canberra is enforcement action for failing to pay the 5% levy, or legal action by an owners corporation if strata bylaws prohibit short stays, which can result in fines and orders to cease the activity.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Canberra.
What's the average short-term occupancy in Canberra in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Canberra is approximately 60%, which represents an increase from the previous year and reflects steady demand from business travelers and government visitors.
The realistic occupancy range for most Canberra short-term rentals spans from around 45% for average properties in less central locations, up to 75% or higher for professionally managed, well-reviewed listings in prime Inner North and Inner South locations.
The highest occupancy months for Canberra short-term rentals are typically March through May and September through November, when parliamentary sitting periods, major conferences, and business travel create sustained demand throughout the working week.
The lowest occupancy periods in Canberra typically fall in late December through January when Parliament is not sitting, government offices operate at reduced capacity, and the city empties out as public servants take summer holidays, as well as during the coldest winter weeks in July when leisure tourism is minimal.
Finally, please note that you can find much more granular data about this topic in our property pack about Canberra.
What's the average nightly rate in Canberra in 2026?
As of early 2026, the average nightly rate for short-term rentals in Canberra is approximately A$130 (US$85, €78), based on ACT-wide market data that primarily reflects Canberra listings.
The realistic nightly rate range for most Canberra short-term rentals spans from around A$80 (US$52, €48) for basic studios or rooms in outer suburbs, up to A$250 or more (US$163, €150) for premium 2-bedroom apartments in prime locations like Braddon, Kingston Foreshore, or near Parliament House.
Peak season rates in Canberra during major events and busy parliamentary periods typically run 20% to 40% higher than off-season rates, meaning a property averaging A$130 per night might command A$160 to A$180 (US$104 to US$117, €96 to €108) during high-demand weeks and drop to A$100 to A$110 (US$65 to US$72, €60 to €66) during quiet January or mid-winter periods.
Is short-term rental supply saturated in Canberra in 2026?
As of early 2026, the Canberra short-term rental market is moderately supplied but not fully saturated, with around 3,290 active listings across the ACT and approximately 8% year-over-year growth in active listings, indicating ongoing competition but still room for well-positioned properties.
The current trend shows Canberra's short-term rental supply is growing steadily, which means new entrants should expect to compete against an increasing number of professional operators rather than finding an underserved market.
The most oversaturated neighborhoods for short-term rentals in Canberra are the CBD, Braddon, and Kingston Foreshore, where high concentrations of investor-owned apartments and the appeal to business travelers have attracted significant competition, making it harder for new listings to stand out without exceptional reviews or unique features.
Neighborhoods with more room for new short-term rental supply include parts of Belconnen near the University of Canberra (serving visiting academics and student families), the Woden Valley near Canberra Hospital (for medical-related stays), and emerging areas like Gungahlin that are underrepresented on platforms relative to their population and visitor needs.
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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 |
|---|---|---|
| Australian Taxation Office (ATO) | The official Australian government tax agency explaining foreign investment rules. | We used it to confirm the temporary ban on foreigners buying established homes. We referenced the exact ban dates and exception framework. |
| Foreign Investment Review Board (FIRB) | The federal regulator's official guidance on what foreign buyers can purchase. | We used it to explain the default rule steering foreigners toward new builds. We described the approval conditions and pathways available. |
| SQM Research | A respected Australian housing data publisher with transparent methodology. | We used it for January 2026 weekly rent snapshots by property type. We anchored our rent estimates for studios, 1-beds, and 2-beds to this data. |
| AirDNA | A widely used short-term rental analytics provider with consistent metrics. | We used it to estimate Canberra short-term occupancy, average daily rates, and supply. We quantified market saturation using their listing counts and growth data. |
| ACT Revenue Office | The official ACT government source for rates and land tax calculations. | We used it to structure the monthly holding cost budget into rates and land tax. We explained why costs vary significantly by property value. |
| ACT Government | The official ACT government rules page for landlords and tenants. | We used it to confirm rent increase frequency limits and the formal process. We kept the regulation section grounded in ACT-specific rules. |
| NAB Property Research | A major bank's research publication based on established housing datasets. | We used it to validate Canberra vacancy and yield commentary. We referenced it as a second anchor beyond single private datasets. |
| Savings.com.au (CoreLogic data) | A mainstream finance publisher explicitly citing CoreLogic as its dataset. | We used it to identify named Canberra suburbs with high yields. We triangulated against SQM and NAB for yield directionality. |
| Legal Aid ACT | A trusted public legal service explaining tenancy law in plain English. | We used it to confirm the bond cap and return rules. We cross-checked this against official government bond guidance. |
| ACT Revenue Office (STR Levy) | The official ACT tax guidance for short-term rental accommodation. | We used it to explain the 5% levy and registration requirements. We clarified how platform versus direct bookings are treated. |
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.
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