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
In this blog post, we look at whether January 2026 is the right time to buy a residential property in Canberra, using the freshest data available on housing prices, rental yields, and market conditions.
We cover everything from price trends and affordability to infrastructure projects and zoning changes that could affect property values in Canberra.
This article is constantly updated to reflect the latest Canberra property market data, so you always have current information at your fingertips.
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.
So, is now a good time?
As of early 2026, buying property in Canberra looks like a "rather yes" decision if you have a 5 to 10 year horizon and are not stretching your budget to the absolute limit.
The strongest signal supporting this view is that house listings in Canberra are down about 15% compared to last year, which means tight supply is keeping prices stable rather than speculation driving them up.
Another key signal is that Canberra's rental yields sit around 4%, which is above the combined capital city average and helps make the numbers work for investors.
Price growth in Canberra is running at a moderate 4% to 5% per year rather than a risky double-digit surge, and homes are selling in about 49 days on average, which shows the market is active but not overheated.
The best strategy right now is to focus on well-located units or townhouses near town centres like Braddon, Kingston, Belconnen, or Phillip, where you can find better value compared to the tighter detached house market, and plan to hold for at least five years.
Please note this is not financial or investment advice, we do not know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Canberra, or should I wait as of 2026?
Do real estate prices look too high in Canberra as of 2026?
As of early 2026, Canberra property prices are highly unaffordable in absolute terms, with the median dwelling value sitting around $892,000 and detached houses averaging about $1.04 million, but the market is not showing signs of a speculative blow-off top.
One clear signal that prices are stretched but not collapsing is that homes in Canberra are taking a median of 49 days to sell, which is slightly above the decade average of around 46 days, suggesting buyers are being careful but sellers are not panicking.
Another supporting signal is that annual price growth in Canberra is running at a moderate 4% to 5% rather than the double-digit surges that typically precede crashes, which tells us the market is cooling naturally rather than overheating dangerously.
You can also read our latest update regarding the housing prices in Canberra.
Does a property price drop look likely in Canberra as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Canberra over the next 12 months looks low, mainly because supply remains tight and there are no obvious signs of forced selling or oversupply building up.
Looking at the plausible range of outcomes, Canberra property prices could move anywhere from a mild 2% to 3% pullback to continued modest gains of 3% to 5%, with a sharp crash requiring conditions we simply do not see forming right now.
The single most important factor that would increase the odds of a price drop in Canberra is a significant rise in interest rates, because the city's high entry prices make buyers very sensitive to changes in borrowing costs and monthly repayments.
However, with the Reserve Bank of Australia holding rates steady and market expectations leaning toward gradual easing rather than hikes, this downside risk looks contained rather than imminent for early 2026.
Finally, please note that we cover the price trends for next year in our pack about the property market in Canberra.
Could property prices jump again in Canberra as of 2026?
As of early 2026, the likelihood of a renewed price surge in Canberra looks low to medium, because while supply is tight enough to support prices, affordability constraints are putting a ceiling on how fast buyers can push values higher.
Looking at the plausible upside range, Canberra property prices could rise between 4% and 7% over the next 12 months if conditions stay favourable, but a double-digit jump would require something unexpected like aggressive rate cuts or a sudden investor rush.
The single biggest demand-side trigger that could drive prices to jump again in Canberra would be a significant easing in borrowing costs, because lower interest rates would immediately expand what buyers can afford in this high-price market.
Please also note that we regularly publish and update real estate price forecasts for Canberra here.
Are we in a buyer or a seller market in Canberra as of 2026?
As of early 2026, Canberra is a mild seller's market for houses and closer to balanced for units, which means buyers looking at apartments have more negotiating room than those chasing detached homes.
In terms of months-of-inventory, Canberra houses are sitting well below the balanced market level of around 4 to 5 months, with listings down about 15% year-on-year, which typically gives sellers the upper hand in negotiations.
While we do not have precise price-reduction data for Canberra in our sources, the fact that homes are selling in 49 days on average and house prices are still rising at 5% annually suggests that sellers are not being forced to cut asking prices significantly to find buyers.
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.
Are homes overpriced, or fairly priced in Canberra as of 2026?
Are homes overpriced versus rents or versus incomes in Canberra as of 2026?
As of early 2026, Canberra homes look expensive but not wildly overpriced when you compare purchase prices to rents, because rental yields around 4% are actually above the combined capital city average, though affordability versus incomes remains very stretched.
The price-to-rent ratio in Canberra sits around 25 to 26, meaning it would take roughly 25 years of rent to equal the purchase price, which is high but fairly typical for expensive, supply-constrained Australian capitals rather than a sign of extreme speculation.
When it comes to price-to-income, Canberra is stretched well beyond the traditional affordability benchmark of 3 to 4 times household income, with median dwelling values around $892,000 requiring dual high incomes to service comfortably, even with Canberra's above-average public sector wages.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Canberra.
Are home prices above the long-term average in Canberra as of 2026?
As of early 2026, Canberra property prices are above their long-term average in nominal terms, having risen strongly over the past two decades, though recent growth is more moderate than the sharp run-up seen in the early 2020s.
The recent 12-month price change in Canberra is running at about 4% to 5% for dwellings overall, which is well below the pre-pandemic surge years but still positive, suggesting the market has settled into a steadier pace rather than reversing course.
In inflation-adjusted terms, Canberra prices remain elevated compared to their prior cycle peak, but the city's stable government employment base and consistent demand have historically prevented the dramatic boom-bust swings seen in mining-dependent cities.
Get fresh and reliable information about the market in Canberra
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What local changes could move prices in Canberra as of 2026?
Are big infrastructure projects coming to Canberra as of 2026?
As of early 2026, the biggest infrastructure project likely to affect Canberra property prices is Light Rail Stage 2, which will extend the network from the city centre through the parliamentary triangle to Woden, with areas near planned stations in Kingston, Barton, and Phillip expected to see stronger demand over time.
The timeline for Light Rail Stage 2 shows that Stage 2A construction is underway with federal funding confirmed, while Stage 2B is progressing through environmental assessment and planning exhibition, meaning full completion is still several years away but the trajectory is clear.
For the latest updates on the local projects, you can read our property market analysis about Canberra here.
Are zoning or building rules changing in Canberra as of 2026?
The single most important zoning change being discussed in Canberra right now is the push for more "missing middle" housing, meaning townhouses, duplexes, and low-rise infill in established suburbs where only detached houses were previously allowed.
As of early 2026, the net effect of these likely zoning changes on Canberra property prices is expected to be moderately price-stabilising over time, because enabling more townhouse and duplex construction in inner suburbs could slowly ease the supply crunch that has been pushing detached house prices higher.
The areas most affected by these rule changes in Canberra are established inner suburbs with good access to town centres and transport, including neighbourhoods in the Inner North like Turner and O'Connor, and Inner South areas like Griffith and Narrabundah, where land values make infill development economically attractive.
Are foreign-buyer or mortgage rules changing in Canberra as of 2026?
As of early 2026, there are no major foreign-buyer or mortgage rule changes on the immediate horizon for Canberra that would significantly shift property prices, with existing fee structures and lending standards expected to remain broadly stable through the year.
On the foreign-buyer side, the existing fee framework documented by the Australian Taxation Office continues to apply, and there is no current indication of sudden changes to quotas, bans, or enforcement that would materially affect demand in Canberra's market.
For mortgage rules, the main factor affecting Canberra buyers remains the interest rate environment rather than new lending restrictions, because the RBA cash rate directly determines borrowing capacity, and any future stress test or LTV changes would likely be flagged well in advance by APRA.
You can also read our latest update about mortgage and interest rates in Australia.
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.
Will it be easy to find tenants in Canberra as of 2026?
Is the renter pool growing faster than new supply in Canberra as of 2026?
As of early 2026, renter demand in Canberra is outpacing new rental supply, which is why rents keep rising and yields remain solid at around 4%, with the structural undersupply across Australia continuing to affect the capital as well.
The main signal of renter demand in Canberra is the city's stable public sector employment base and steady inflow of professionals, which supports consistent household formation even when broader economic conditions fluctuate elsewhere in Australia.
On the supply side, new rental completions in Canberra are constrained by the same factors affecting the rest of the country, including planning delays, labour shortages, and construction cost pressures, meaning the pipeline is not catching up fast enough to ease the rental squeeze.
Are days-on-market for rentals falling in Canberra as of 2026?
As of early 2026, we do not have precise days-on-market data for Canberra rentals in our sources, but the high rent levels, with houses at around $775 per week and units at around $580 per week, suggest that properties are being absorbed quickly rather than sitting vacant.
In terms of location differences, rentals in high-demand areas like Braddon, Kingston, and near major town centres like Belconnen typically let faster than properties in outer suburbs, with the difference often amounting to weeks rather than days.
The most common reason rental days-on-market falls in Canberra is simple undersupply, because when there are fewer available properties than renters looking, competition pushes tenants to act quickly and landlords to be less flexible on price.
Are vacancies dropping in the best areas of Canberra as of 2026?
As of early 2026, vacancy rates in Canberra's best-performing rental areas, including the Inner North suburbs like Braddon, Turner, and Dickson, and Inner South areas like Kingston and Griffith, are staying low and the rental market remains tight across these locations.
While we do not have precise suburb-level vacancy percentages in our sources, the overall Canberra rental market shows firm conditions with rents still rising annually, which typically indicates that vacancies in prime areas are at or below the broader market average.
One practical sign that the best areas in Canberra are tightening first is when landlords in places like Braddon or Kingston start receiving multiple applications within days of listing, while properties in outer suburbs like Tuggeranong may take a week or two longer to find tenants.
By the way, we've written a blog article detailing what are the current rent levels in Canberra.
Buying real estate in Canberra can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Canberra as of 2026?
Is for-sale inventory shrinking in Canberra as of 2026?
As of early 2026, for-sale inventory for houses in Canberra has shrunk significantly, with listings down about 15% compared to the same time last year, though unit listings have only dipped slightly by around 1.5%, showing a clear split between the two market segments.
In terms of months-of-supply, Canberra's house market is sitting well below the balanced level of 4 to 5 months, which means buyers face competition and sellers have more leverage, while the unit market is closer to equilibrium with more choice available.
The most likely reason inventory is shrinking for houses in Canberra is that existing homeowners are reluctant to sell and re-enter a market where they would face the same tight conditions and high prices, creating a lock-in effect that keeps listings low.
Are homes selling faster in Canberra as of 2026?
As of early 2026, the median time to sell a home in Canberra is around 49 days, which is not speeding up dramatically but is holding steady at a pace that indicates reasonable buyer interest without panic buying.
Compared to last year, days-on-market in Canberra has remained relatively stable and is only slightly above the decade average of around 46 days, suggesting the market is neither accelerating sharply nor slowing down in a worrying way.
Are new listings slowing down in Canberra as of 2026?
As of early 2026, new for-sale listings for houses in Canberra are running noticeably lower than last year, with the 15% drop in total house listings suggesting that fewer owners are putting their properties on the market rather than just faster absorption of available stock.
Canberra typically sees seasonal listing patterns with a quieter period over summer and a pickup in autumn, and while we are in the early January period right now, the underlying trend of constrained new supply looks like more than just a seasonal dip.
The most plausible reason new listings are slowing in Canberra is a combination of seller caution and rate lock-in, where homeowners who locked in low mortgage rates during 2020 to 2022 are reluctant to sell and take on new debt at higher rates, even if they would like to move.
Is new construction failing to keep up in Canberra as of 2026?
As of early 2026, new housing construction in Canberra is not keeping pace with household demand, which is consistent with the national picture where planning, labour, and build-time constraints have created a persistent undersupply that will take years to resolve.
The recent trend in Canberra shows that while some apartment developments are progressing, the pipeline for new detached houses and missing middle housing like townhouses remains limited, which is part of why the ACT government is actively pushing planning reforms.
The single biggest bottleneck limiting new construction in Canberra is the planning and approval process for infill development, because while greenfield land exists on the edges of the city, building more townhouses and duplexes in established suburbs requires navigating complex zoning rules that are only now being reformed.
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.
Will it be easy to sell later in Canberra as of 2026?
Is resale liquidity strong enough in Canberra as of 2026?
As of early 2026, resale liquidity in Canberra is reasonable, with homes typically selling within about 7 weeks at realistic pricing, which means you should be able to exit your investment without major difficulty if you price appropriately for the market.
The median days-on-market of around 49 days in Canberra compares favourably to a healthy liquidity benchmark of 60 to 90 days, suggesting that well-priced properties are finding buyers without excessive waiting times or forced price cuts.
One property characteristic that most improves resale liquidity in Canberra is location near employment nodes and transport, with homes in the Inner North near Braddon and Dickson, or Inner South near Kingston, consistently selling faster than equivalent properties in outer suburbs like Tuggeranong or Gungahlin.
Is selling time getting longer in Canberra as of 2026?
As of early 2026, selling time in Canberra is slightly longer than it was at the market peak but has stabilised, with the median of 49 days sitting just a few days above the decade average rather than trending sharply upward.
The realistic range of selling times in Canberra runs from around 3 to 4 weeks for well-priced properties in popular inner suburbs to 8 to 10 weeks for homes in less sought-after locations or those priced above market expectations.
One clear reason selling time can lengthen in Canberra is affordability pressure, because when buyers are already stretching their budgets to meet high prices, they become more cautious and selective, which means overpriced listings sit longer before sellers adjust their expectations.
Is it realistic to exit with profit in Canberra as of 2026?
As of early 2026, the likelihood of selling with a profit in Canberra is medium to high if you hold for at least 5 years, because the market is growing steadily rather than booming, which means short-term flips are risky but patient investors should do well.
The minimum holding period that most often makes exiting with profit realistic in Canberra is around 5 to 7 years, which gives you enough time to absorb transaction costs and benefit from the city's historically steady long-term price appreciation.
The total round-trip cost of buying and selling a property in Canberra, including stamp duty, legal fees, and agent commissions, typically runs between 8% and 10% of the purchase price, which means about $70,000 to $90,000 on a median-priced dwelling of around $890,000 (roughly $45,000 to $58,000 USD or EUR 41,000 to 53,000).
One clear factor that most increases profit odds in Canberra is buying a well-located unit or townhouse slightly below market value, because these properties benefit from both rental income during the holding period and the supply-constrained demand in areas near town centres and transport links.
Get the full checklist for your due diligence in Canberra
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 |
|---|---|---|
| NAB Canberra Property Market Insights | Major bank research using Cotality data with consistent monthly metrics. | We used it for Canberra medians, days-on-market, listings, yields, and sales. We treated it as our primary local market dashboard. |
| PropTrack Home Price Index | Established national index from REA Group with transparent methodology. | We used it to validate price momentum direction going into 2026. We relied on it as a second independent lens alongside Cotality data. |
| REA Group Listings Report | Large repeatable dataset on for-sale listings with clear definitions. | We used it to frame the national supply backdrop affecting Canberra. We combined it with local listing data from NAB. |
| Cotality Indices Overview | Primary publisher of one of Australia's most-used housing market indices. | We used it to support interpretation of how the index is built. We treated it as a methodology anchor rather than headline source. |
| Reserve Bank of Australia Cash Rate | Central bank's official record of policy rates driving mortgage pricing. | We used it to frame the main macro risk lever for Canberra prices. We connected rate direction to buyer demand sensitivity. |
| SQM Research Weekly Rents | Long-running Australian housing data provider with consistent rental series. | We used it for concrete Canberra weekly rent levels by property type. We used those figures for price-to-rent and yield estimates. |
| ABS Average Weekly Earnings | Official national statistics agency's earnings series for income context. | We used it to anchor income reality when discussing affordability. We paired it with ACT-specific data for local relevance. |
| ACT Treasury AWOTE Summary | ACT government summarising ABS earnings with local commentary. | We used it to translate national earnings into a Canberra lens. We treated it as a local sanity-check for wage trends. |
| ACT Legislative Assembly Light Rail Update | Primary government document tabled to the ACT Assembly. | We used it to anchor infrastructure timing and project status. We used it to explain which corridors may see demand uplift. |
| Infrastructure Investment Program | Federal infrastructure program's official project page. | We used it to confirm Light Rail Stage 2A status from federal level. We avoided relying on media summaries for infrastructure. |
| ACT Planning Territory Plan | ACT government's official planning rulebook and guidance. | We used it to discuss supply-side change from planning settings. We identified why missing middle debate matters locally. |
| National Housing Supply and Affordability Council | Official national council report assessing housing supply system-wide. | We used it for big structural context on undersupply. We used it as a foundation for why 2026 is not magically different. |
| REIA Real Estate Market Facts | Long-history compilation of Australian property price milestones. | We used it for long-term historical context on Canberra prices. We compared current cycle position against two-decade trends. |
| ATO Foreign Investor Fees | Official government source on foreign residential investment rules. | We used it to assess whether foreign buyer rules are changing. We used it mainly to rule out surprise demand shocks. |
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.
Related blog posts