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Yes, the analysis of Canberra's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Braddon? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other suburbs like Kingston or Belconnen where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Canberra Property Pack.
Will property prices increase in Canberra in 2025?
Yes, property prices in Canberra are expected to rise in 2025, driven by a combination of strong demand and limited housing supply.
Backed by our fresh, in-depth market analysis, we’re confident that Canberra remains an attractive market for both domestic and international investors.
While there are some economic challenges like inflation and interest rate fluctuations, the primary factors driving Canberra's property market growth are expected to persist.
Demand, particularly in desirable suburbs, continues to outpace supply, making significant price declines unlikely. Additionally, Canberra's status as the capital city and a hub for government and education continues to attract buyers.
Signals pointing to a property price increase in Canberra
Here are some factors suggesting prices could increase:
The ongoing shortage of new housing developments in Canberra is expected to continue into 2025, with limited land releases and construction activity. This supply constraint is likely to drive up property prices, especially in established suburbs.
Canberra's strong employment market, particularly in the public sector, provides economic stability and supports housing demand. As government employment remains robust, more people are likely to seek housing in the area, pushing prices higher.
The city's reputation for high-quality education and research institutions continues to attract students and professionals, increasing demand for rental properties and investment opportunities, which can drive up property values.
Infrastructure improvements, such as the expansion of the light rail network, are expected to enhance connectivity and accessibility in Canberra, making certain areas more attractive and potentially increasing property values.
Canberra's lifestyle appeal, with its green spaces, cultural amenities, and high standard of living, continues to draw new residents, supporting ongoing demand for housing and contributing to price growth.
The trend of remote working is encouraging more people to move to Canberra for its quality of life, further boosting demand for housing in the region.
Government incentives for first-time homebuyers and investors are expected to stimulate market activity, increasing competition for available properties and driving up prices.
Signals pointing to a property price decrease in Canberra
Here are some factors suggesting prices could fall:
Rising interest rates could make borrowing more expensive, potentially reducing the purchasing power of buyers and cooling demand in the property market.
Economic uncertainties, such as inflation and global market volatility, could impact consumer confidence and lead to a more cautious approach to property investment.
If there is a significant increase in housing supply due to policy changes or unexpected developments, it could alleviate some of the upward pressure on prices, leading to a stabilization or decrease in property values.
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If property prices go up in Canberra, how much would they increase by?
If real estate prices in Canberra were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in stable, mature markets like Canberra appreciates by approximately 2% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 3-bedroom house in Belconnen for 750,000 AUD today, don't be surprised if it's priced between 772,500 and 802,500 AUD this time next year.
To give you a better understanding, here is a table that shows 7 types of Canberra real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 5%, and 7%.
Type of Property | Average Price in 2024 (AUD) | Price in 2025 (2% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
---|---|---|---|---|
3-Bedroom House (120 sqm / 1,292 sqft) | 750,000 | 765,000 | 787,500 | 802,500 |
Modern Apartment (90 sqm / 969 sqft) | 600,000 | 612,000 | 630,000 | 642,000 |
Luxury Penthouse (150 sqm / 1,615 sqft) | 1,500,000 | 1,530,000 | 1,575,000 | 1,605,000 |
Studio (40 sqm / 431 sqft) | 350,000 | 357,000 | 367,500 | 374,500 |
Loft (100 sqm / 1,076 sqft) | 800,000 | 816,000 | 840,000 | 856,000 |
Townhouse (200 sqm / 2,153 sqft) | 1,200,000 | 1,224,000 | 1,260,000 | 1,284,000 |
Investment Property (70 sqm / 753 sqft) | 500,000 | 510,000 | 525,000 | 535,000 |
Everything you need to know is included in our Property Pack for Canberra
If real estate prices go up in Canberra, which areas are likely to see the biggest increases?
Today, people who want to move to Canberra are looking for a blend of natural beauty, modern amenities, and vibrant community life, which Braddon delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Kingston has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Canberra market.
Neighborhood | Level of Increase | Why |
---|---|---|
Braddon | High | Recent development of luxury apartments and its increasing appeal to young professionals and creatives, driving demand. |
Kingston | High | Expected rise due to limited housing stock, upcoming waterfront developments, and growing demand for prime properties in central Canberra. |
Gungahlin | Medium-High | Ongoing urban expansion and new transport links, along with several planned community projects in the area, are likely to push prices higher. |
Belconnen | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
Woden Valley | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
Narrabundah | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
Dickson | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
Tuggeranong | Medium-High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
Molonglo Valley | Medium-High | Its proximity to Canberra city center, along with new residential developments, makes it increasingly attractive to professionals seeking more space. |
Yarralumla | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
City Centre | High | Upcoming restoration of iconic buildings and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Canberra
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Canberra?
In 2025, Canberra real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas around Canberra, such as Gungahlin and Tuggeranong, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a city like Canberra, known for its natural beauty and open spaces, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Canberra's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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