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Property prices in Canberra are showing signs of stabilization after a period of decline, with modest monthly gains of 0.4% as of June 2025.
While the annual growth remains weak at just 0.8%, and prices sit 4.5% below their 2022 peak, the market is experiencing its fourth consecutive month of price increases. The median house price has reached $975,387, with units at $594,769, indicating that Canberra remains one of Australia's more expensive property markets despite lagging behind the growth rates of Perth, Adelaide, and Brisbane.
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Canberra's property market is experiencing a mild recovery in mid-2025, with prices stabilizing after declining from their 2022 peak. The market shows modest monthly gains but remains relatively flat on an annual basis.
Different property types and suburbs are performing variably, with apartments and townhouses outperforming houses, and newer suburbs like Molonglo showing stronger growth than established areas.
| Metric | Current Value (June 2025) | Change from Last Year |
|---|---|---|
| Median House Price | $975,387 | -0.5% |
| Median Unit Price | $594,769 | -1.2% |
| Overall Annual Growth | 0.8% | Improved from negative |
| Monthly Change | +0.4% | 4th consecutive positive month |
| Below 2022 Peak | -4.5% | Recovery underway |
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.
What are the current median property prices in Canberra as of June 2025?
Property prices in Canberra have reached $975,387 for houses and $594,769 for units as of June 2025.
These figures represent a stabilization in the market after a period of decline. The median dwelling price across all property types stands at $855,663, reflecting a modest 0.4% monthly increase and a 0.5% quarterly rise. However, on an annual basis, prices remain slightly down by 0.7% compared to May 2024.
The current prices position Canberra as one of Australia's more expensive capital cities, sitting between Brisbane and Sydney in terms of median house values. Despite this high price point, the ACT's property market has been underperforming compared to other major cities, with annual growth of just 0.8% versus the national average of around 5%.
For context, house prices remain 6.4% below their peak in May 2022, while unit prices are 5.6% below their highest point. This indicates that while the market is recovering, it hasn't yet returned to its previous highs.
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How much have Canberra property prices increased or decreased lately?
Canberra's property market has shown mixed results recently, with short-term gains offsetting longer-term declines.
In the most recent months, both houses and units have experienced a 0.2% monthly increase in April 2025, marking the fourth consecutive month of gains. This represents a turning point after an extended period of price declines. The quarterly performance shows a 0.5% increase, suggesting that momentum is building in the market.
However, the annual picture tells a different story. House values are down 0.5% from a year ago, while unit values have decreased by 1.2%. This weak annual growth of 0.8% overall is significantly below the performance of other Australian capitals like Perth (+9%), Adelaide (+7%), and Brisbane (+6%).
Over the past five years, Canberra has still recorded substantial growth, with median house prices up 30.9%. However, this growth has been uneven, with most gains occurring before the 2022 peak, followed by a correction phase that the market is only now beginning to exit.
The recent stabilization suggests that Canberra's property market may have found its floor and is beginning a gradual recovery phase.
Which Canberra suburbs are experiencing the strongest price growth in 2025?
Several Canberra suburbs are outperforming the broader market, with newer developments and affordable areas leading the charge.
| Suburb | Annual Growth Rate | Key Characteristics |
|---|---|---|
| Molonglo | +2% | Fastest growing district in ACT, newer development area with modern infrastructure and family-friendly amenities |
| Belconnen | +0.9% | Established district with good transport links, shopping centers, and diverse housing options |
| Tuggeranong | +0.5% | Southern district offering more affordable options, popular with first-home buyers |
| Campbell (units) | +29% | Inner-north suburb experiencing apartment boom, close to city center and defense establishments |
| Wright (units) | +11% | Modern Molonglo Valley suburb with new apartment developments and sustainable design features |
| Griffith | -9% (houses), -7% (units) | Traditional high-value suburb experiencing price correction after significant previous gains |
The data reveals a clear pattern: newer suburbs and those offering better value are attracting stronger buyer interest, while traditionally expensive inner suburbs are experiencing price corrections. This shift reflects changing buyer preferences toward affordability and modern amenities.
What property types are seeing the biggest price increases in Canberra?
Apartments and townhouses are leading Canberra's property market recovery, significantly outperforming traditional detached houses.
Medium and high-density properties gained nearly 1% in February 2025 alone, while house prices remained relatively flat during the same period. This trend reflects a fundamental shift in buyer preferences driven by affordability constraints and lifestyle changes. Units in select suburbs like Campbell saw extraordinary growth of 29% annually, while Wright recorded an 11% increase.
The "missing middle" housing segment - comprising townhouses, terraces, and low-rise apartments - is experiencing particularly strong demand. The ACT government's planning reforms specifically target increased supply of these property types, recognizing their appeal to both first-home buyers and downsizers seeking more affordable alternatives to traditional houses.
This performance differential is creating a narrowing gap between house and unit prices. While houses still command a premium, the traditional price spread is compressing as buyers increasingly view apartments and townhouses as viable long-term housing solutions rather than just stepping stones.
The trend is expected to continue as government policies favor higher-density development and buyers prioritize location and affordability over traditional suburban houses.
What are the property price forecasts for Canberra in 2026 and beyond?
Property market analysts predict a moderate recovery for Canberra's real estate sector over the coming years.
For the immediate future, Canberra house prices are forecast to rise 3% through the remainder of 2025 and accelerate to 7% growth in 2026. This projected improvement reflects expectations of continued interest rate cuts and stabilizing economic conditions. Unit prices are expected to perform similarly or slightly better, given their current momentum.
Looking toward 2030, if historical growth patterns repeat, Canberra's median house price could increase by approximately 40%, potentially reaching $1.36 million. However, this assumes economic stability and continued population growth to the projected 500,000 residents by 2027.
Over the longer term, Canberra's 20-year track record shows house prices increased 166.9%, with a 61.6% rise over the past decade. While future growth may moderate compared to these historical rates, the fundamentals of limited land supply, steady population growth, and Canberra's status as the national capital support continued appreciation.
Market experts caution that these forecasts depend heavily on interest rate trajectories, government employment levels, and broader economic conditions.
How are recent RBA interest rate cuts affecting Canberra's property market?
The Reserve Bank's 0.25% rate cut in May 2025 has begun to positively influence buyer sentiment in Canberra's property market.
With the cash rate dropping from 4.10% to 3.85%, borrowing capacity has improved marginally, particularly benefiting first-home buyers and investors looking at apartments and townhouses. Mortgage brokers report increased inquiry levels and pre-approval applications, though this hasn't yet translated into a surge in sales volumes.
The rate cut's impact has been most pronounced in the affordable property segments. Buyers who were previously priced out of the market are finding their borrowing power increased by approximately 3-4%, enough to bridge the gap for many entry-level properties. However, with median house prices still near $1 million, affordability remains a significant constraint.
Economists expect further moderate rate cuts throughout 2025, potentially bringing the cash rate down to 3.6% by year-end. This trajectory should provide additional support to the market, though experts caution against expecting a return to the ultra-low rates seen during the pandemic era.
The improved financial conditions are reflected in buyer behavior, with auction attendance increasing and days on market beginning to decrease for well-priced properties.
What impact is the 2025 ACT Budget having on Canberra's housing market?
The ACT government's $285 million housing investment in the 2025 budget aims to address supply constraints and affordability challenges.
The budget allocates $118 million for social housing development, $80 million for planning system improvements, and $67 million for private renter support programs. These initiatives represent a significant commitment to increasing housing supply across all market segments, from social housing to private development.
Planning reforms to enable more "missing middle" homes - townhouses, terraces, and low-rise apartments - are particularly significant. These changes should facilitate increased density in established suburbs, potentially moderating price growth in the medium term by improving supply. Early indicators suggest developers are responding positively, with increased development applications for medium-density projects.
However, construction activity remains subdued despite these initiatives. Dwelling commencements and investment are both down year-on-year, reflecting ongoing challenges with construction costs and labor availability. This lag between policy announcement and actual delivery means the full impact on prices may not be felt until 2026 or beyond.
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How does current demand compare to previous years in Canberra?
Demand for Canberra properties in mid-2025 remains subdued compared to historical averages.
Sales volumes are running 1% lower than a year ago and sit 9.7% below the five-year average, indicating that buyer activity hasn't fully recovered from the recent downturn. This reduced transaction volume reflects ongoing affordability challenges and buyer caution despite improving interest rate conditions.
The supply side tells an interesting story, with house listings up 12.5% and unit listings increasing 16.1% year-over-year. This increased inventory gives buyers more choice and negotiating power, contributing to the slower price growth compared to other Australian capitals. The vacancy rate of 1.6% indicates the rental market remains relatively tight, providing some support to investor demand.
Auction clearance rates have dropped significantly to 46.6%, compared to 62.9% a year earlier. This metric clearly demonstrates weaker buyer competition and more selective purchasing behavior. Properties are taking longer to sell, with average days on market extending beyond 40 days for houses.
Despite these challenging conditions, there are early signs of improvement, with buyer inquiries increasing and open house attendance rising in recent months.
How do Canberra's property prices compare to other Australian capitals?
Canberra maintains its position as one of Australia's more expensive property markets, though its growth is lagging behind most other capitals.
With a median house price of $975,387, Canberra sits fourth among Australian capitals, below Sydney ($1,421,413), Melbourne ($1,027,996), and just above Brisbane ($937,479). For units, Canberra's median of $594,769 places it third nationally, demonstrating the city's relatively high property values across all dwelling types.
However, Canberra's annual growth rate tells a different story. While Perth leads with 9% growth, followed by Adelaide (7%) and Brisbane (6%), Canberra's modest 0.4% monthly growth translates to minimal annual appreciation. This underperformance reflects local factors including public sector employment uncertainty and the market's previous overvaluation.
The price-to-income ratios in Canberra remain challenging, though not as extreme as Sydney or Melbourne. The city's high average incomes, driven by public sector employment, partially offset the high absolute prices, but affordability remains a key constraint on market growth.
Looking forward, Canberra's relative underperformance may present opportunities for buyers seeking value in a capital city market with strong long-term fundamentals.
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 are the key economic factors driving Canberra's property market in 2025?
Several interconnected economic forces are shaping Canberra's property market dynamics in mid-2025.
Interest rates remain the dominant factor, with the RBA's recent cuts beginning to improve affordability and buyer confidence. Each 0.25% reduction increases borrowing capacity by approximately 3%, directly impacting what buyers can afford. However, rates remain well above the historic lows of 2020-2021, continuing to constrain demand.
Population growth projections show Canberra reaching 500,000 residents by 2027, providing underlying support for housing demand. This steady growth, combined with limited land supply due to Canberra's planned city status, creates fundamental upward pressure on prices despite current market softness.
The labor market presents mixed signals. While unemployment remains low, job growth is slowing, particularly in the public sector. With a federal election approaching, uncertainty about future government spending and public service employment levels is dampening buyer confidence among Canberra's large public sector workforce.
Construction costs remain elevated, with builders facing ongoing challenges from material prices and labor shortages. This restricts new supply and supports prices in the established housing market, even as demand softens.
What do property experts predict for Canberra's market in the next 12 months?
Market analysts expect Canberra's property market to experience a gradual recovery through the remainder of 2025.
Most experts predict subdued growth in the near term, with prices potentially rising 2-3% by year-end. This modest appreciation reflects the balancing act between improving interest rate conditions and ongoing affordability challenges. CoreLogic's research head notes that "given Canberra had experienced one of the bigger price declines at 7 per cent, it had the capacity for price gains."
The consensus view suggests apartments and townhouses will continue outperforming houses, driven by affordability factors and changing lifestyle preferences. First-home buyers and downsizers are expected to remain the most active market segments, particularly in suburbs offering good value and modern amenities.
Risk factors include potential changes following the federal election, which could impact public sector employment and buyer confidence. Additionally, if interest rate cuts don't materialize as expected, or if construction costs continue rising, the recovery could be slower than anticipated.
Overall, experts recommend a cautiously optimistic approach, suggesting that while dramatic price growth is unlikely, the market has likely found its floor and offers reasonable prospects for steady appreciation.
Which Canberra property market segments offer the best investment potential?
Strategic property investors are finding opportunities in specific Canberra market segments that show strong growth potential.
- Molonglo Valley developments: New suburbs in this district are recording the ACT's fastest growth at 2% annually, with modern infrastructure and masterplanned communities attracting young families.
- Affordable apartments in established suburbs: Units in suburbs like Wright (+11%) and Campbell (+29%) are delivering exceptional returns as buyers seek affordability near employment centers.
- Townhouses and "missing middle" housing: Government planning reforms favor this segment, with strong demand from both owner-occupiers and renters seeking affordable alternatives to houses.
- Properties near light rail corridors: Areas along current and planned light rail routes show potential for above-average growth as transport infrastructure improves.
- Student accommodation near universities: With international student numbers recovering and two major universities, purpose-built student accommodation offers steady rental yields.
Investors should focus on properties under $700,000, where first-home buyer demand remains strongest and government incentives apply. The rental vacancy rate of 1.6% ensures steady tenant demand across most segments.
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Conclusion
Based on current market data and expert analysis, property prices in Canberra are stable as of mid-2025.
While the market shows encouraging signs with four consecutive months of gains and improving buyer sentiment from interest rate cuts, the annual growth of just 0.8% and prices still sitting 4.5% below their 2022 peak indicate we're in a stabilization phase rather than a growth phase. The varying performance across suburbs and property types, with apartments outperforming houses and newer areas like Molonglo showing stronger results, suggests a market in transition. Looking ahead, modest growth of 3-7% is forecast over the next two years, but Canberra's recovery is expected to lag behind other Australian capitals.
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.
The Canberra property market's current stabilization phase presents both opportunities and challenges for buyers and investors. While prices aren't surging as they are in Perth or Adelaide, the market's relative stability offers a chance to purchase without the pressure of rapid price escalation.
For those considering entering the Canberra market, the combination of increasing government investment in housing, gradual interest rate reductions, and steady population growth suggests that the worst of the downturn is likely behind us. However, buyers should remain realistic about growth prospects and focus on properties that offer good value and meet their long-term needs rather than expecting quick capital gains.
Sources
- Property Update - Latest Median Property Prices
- NAB - Canberra Property Market Insights
- Region Media - Canberra Market Recovery
- BOQ - Housing Market Update May 2025
- ACT Treasury - Budget 2025 Housing Statement
- CoreLogic - Housing Market in 2025
- REA - Economic Forces Influencing Housing Market
- OpenAgent - Best Suburbs to Invest Canberra
- REIA - Real Estate Market Facts 20 Years
- Domain - House Price Report March 2025