What are the price trends and forecasts in Canberra right now? (2026)

Canberra's property market in 2026 is showing steady momentum, with house prices climbing back toward record levels while units remain more affordable entry points for buyers.

We constantly update this blog post to give you the freshest data on current housing prices in Canberra, growth trends by neighborhood, and forecasts stretching out to the next decade.

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.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Canberra. If you’d like to learn more about us, you can check our presentation page.

What are the current property price trends in Canberra as of 2026?

What is the average house price in Canberra as of 2026?

As of early 2026, the average house price in Canberra sits at approximately A$1.08 million (around US$690,000 or EUR 640,000), placing the territory among Australia's more expensive capital city markets but still well below Sydney's median.

When you break that down to price per square meter, Canberra houses typically cost around A$4,900 per square meter of internal floor area (roughly US$3,100 or EUR 2,900), while apartments and units run higher at about A$7,500 per square meter due to their smaller footprint and often central locations.

The realistic price range that covers roughly 80% of Canberra property purchases stretches from about A$620,000 for a well-located apartment up to A$1.4 million for a detached family home in an established suburb, which translates to approximately US$400,000 to US$900,000 or EUR 370,000 to EUR 830,000.

How much have property prices increased in Canberra over the past 12 months?

Canberra property prices have grown around 4% to 5% over the past 12 months across all dwelling types, a modest but steady pace that reflects the city's stable economy and gradual recovery from the post-pandemic downturn.

When you split that by property type, houses in Canberra have seen approximately 5% to 6% annual growth, while units have been choppier with gains closer to 1% to 3%, partly because apartment supply has been higher relative to demand.

The single most significant factor behind this price movement is the Reserve Bank of Australia's decision to hold the cash rate at 3.60% after earlier cuts, which has stabilized borrowing costs and restored buyer confidence without overheating the market.

Which neighborhoods have the fastest rising property prices in Canberra as of 2026?

As of early 2026, the Canberra neighborhoods with the fastest rising property prices include Palmerston in Gungahlin, Curtin in the Inner South near Woden, and Casey in the outer north, all of which have appeared repeatedly in recent suburb-level growth rankings.

Palmerston has recorded annual price growth of roughly 8% to 10%, while Curtin has seen gains around 7% to 9%, and Casey has posted increases in the 6% to 8% range, outpacing the city-wide average by a significant margin.

The main demand driver for these suburbs is their combination of relative affordability compared to the inner ring, strong school catchments, and improving transport connections, which attracts both upgraders and first-home buyers looking for value.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Canberra.

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.

Which property types are increasing faster in value in Canberra as of 2026?

As of early 2026, houses lead the appreciation rankings in Canberra, followed by townhouses, then apartments and units, reflecting ongoing scarcity of detached homes in middle-ring suburbs and strong family-buyer demand.

Detached houses have appreciated around 5% to 6% over the past year, making them the clear top performer, while townhouses have grown at roughly 4% to 5% and units have managed only 1% to 3% as higher listing volumes weigh on prices.

The main reason houses outperform is that Canberra has limited land available for new detached housing in established areas, so existing homes in desirable suburbs carry a scarcity premium that lifts prices even when buyer demand softens.

Finally, if you're interested in a specific property type, you will find our latest analyses here:

• How much should you pay for a house in Canberra?
• How much should you pay for an apartment in Canberra?
• How much should you pay for a townhouse in Canberra?

What is driving property prices up or down in Canberra as of 2026?

As of early 2026, the top three factors driving Canberra property prices are improved borrowing power after earlier interest rate cuts, a persistently tight rental market with vacancy rates around 1.2% to 1.5%, and the city's stable public-sector employment base that underpins household incomes.

The factor with the strongest upward pressure is rental market tightness, because when rents stay high and vacancies stay low, renters are more motivated to buy if they can, and investors remain active knowing they can find tenants quickly.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about Canberra here.

What is the property price forecast for Canberra in 2026?

How much are property prices expected to increase in Canberra in 2026?

As of early 2026, property prices in Canberra are expected to increase by around 4% to 5% over the full calendar year, with houses leading at roughly 5% growth and units trailing at about 3%.

Forecasts from different analysts range from a conservative 3% gain if economic headwinds materialize, up to an optimistic 7% if interest rates fall faster than expected, with most major bank economists clustered around the 4% to 5% middle ground.

The main assumption underlying most Canberra price forecasts is that the Reserve Bank will hold rates steady or cut modestly in 2026, which would support borrowing capacity without triggering a surge in demand that pushes prices into boom territory.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Canberra.

Which neighborhoods will see the highest price growth in Canberra in 2026?

As of early 2026, the neighborhoods expected to see the highest price growth include Gungahlin suburbs like Franklin and Harrison, the Woden-edge corridor including Curtin, Mawson, and Chifley, and Molonglo Valley areas such as Denman Prospect and Wright.

Projected price growth for these top neighborhoods ranges from 6% to 10% over the year, compared to the city-wide average of roughly 4% to 5%, thanks to their combination of relative affordability and improving infrastructure.

The primary catalyst driving expected growth in these areas is the light rail expansion toward Woden and ongoing town centre upgrades, which make commuting easier and attract both owner-occupiers and investors seeking future capital gains.

One emerging neighborhood that could surprise with higher-than-expected growth is Whitlam in Molonglo Valley, where newer housing stock, family-friendly layouts, and proximity to nature reserves are attracting buyers priced out of established inner suburbs.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Canberra.

What property types will appreciate the most in Canberra in 2026?

As of early 2026, townhouses and well-located two-bedroom apartments are expected to appreciate the most in Canberra, with projected gains of 4% to 6%, because they hit the sweet spot between affordability and livability for constrained buyers.

The top-performing property type, townhouses, is likely to see appreciation around 5% to 6% as buyers who cannot stretch to a detached house seek the next-best option with some land and separation from neighbors.

The main demand trend driving townhouse appreciation is affordability pressure, as borrowing capacity remains capped by interest rates and first-home buyers look for products that offer more space than apartments without the price tag of a full house.

On the other hand, luxury detached houses in prestige suburbs like Forrest or Red Hill are expected to underperform because their high price points limit the buyer pool, and yields are thin, making them less attractive to investors.

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.

How will interest rates affect property prices in Canberra in 2026?

As of early 2026, the current cash rate of 3.60% is exerting a stabilizing influence on Canberra property prices, keeping borrowing costs manageable without unleashing the kind of cheap credit that fueled earlier boom periods.

Most economists expect the Reserve Bank to hold rates steady through the first half of 2026, with a potential cut to 3.35% later in the year if inflation remains contained, which would modestly improve buyer purchasing power.

A 1% change in interest rates typically shifts Canberra borrowing capacity by roughly 10%, meaning a rate cut would allow buyers to afford homes priced about 10% higher, while a rate rise would have the opposite cooling effect on what people can pay.

You can also read our latest update about mortgage and interest rates in Australia.

What are the biggest risks for property prices in Canberra in 2026?

As of early 2026, the three biggest risks for Canberra property prices are a surprise interest rate increase if inflation proves sticky, the new APRA debt-to-income cap reducing borrowing capacity for leveraged buyers, and a potential slowdown in public sector hiring that would weaken local employment.

The risk with the highest probability of materializing is the APRA debt-to-income cap, which takes effect in February 2026 and will directly limit how much high-income buyers can borrow, potentially cooling demand at the upper end of the market.

We actually cover all these risks and their likelihoods in our pack about the real estate market in Canberra.

Is it a good time to buy a rental property in Canberra in 2026?

As of early 2026, Canberra looks like a reasonable market for rental property investment, offering gross yields around 4% that beat most other capital cities, though entry prices remain high and capital growth may be modest rather than spectacular.

The strongest argument in favor of buying now is the persistently tight rental market, with vacancy rates around 1.2% to 1.5% and weekly rents of roughly A$787 for houses and A$580 for units, which means landlords can find tenants quickly and raise rents gradually.

The strongest argument for waiting is that APRA's new lending restrictions may cool demand and create better buying opportunities later in 2026, and the current price-to-income ratio still makes entry expensive even with decent yields.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Canberra.

You'll also find a dedicated document about this specific question in our pack about real estate in Canberra.

Where will property prices be in 5 years in Canberra?

What is the 5-year property price forecast for Canberra as of 2026?

As of early 2026, cumulative property price growth in Canberra over the next five years is expected to reach around 23%, taking the median dwelling value from approximately A$890,000 today to about A$1.09 million by January 2031.

Forecasts range from a conservative 15% cumulative gain if economic headwinds persist or rates rise, up to an optimistic 30% if strong population growth and rate cuts combine, with most analysts clustered around the 20% to 25% middle ground.

That translates to a projected average annual appreciation rate of roughly 4.2% per year over the next five years, which is slower than Canberra's boom periods but consistent with a mature, high-income capital city growing steadily.

The key assumption most forecasters rely on is that population will continue growing by about 8,000 people per year while housing supply remains constrained, keeping structural demand pressure intact even through normal economic cycles.

Which areas in Canberra will have the best price growth over the next 5 years?

The top three areas in Canberra expected to have the best price growth over the next five years are the light rail corridor from Gungahlin through City to Woden, the Molonglo Valley growth belt including Denman Prospect and Wright, and the Woden health precinct suburbs like Phillip, Curtin, and Mawson.

Projected five-year cumulative price growth for these top-performing areas ranges from 28% to 35%, compared to the city-wide average of roughly 23%, thanks to infrastructure investment and sustained demand from both families and investors.

This is broadly consistent with our shorter 2026 forecast, but the five-year horizon amplifies the infrastructure effect because projects like light rail to Woden will be operational or near completion, fully capitalizing the access benefits into property values.

One currently undervalued area with strong outperformance potential over five years is Belconnen's inner suburbs like Bruce and Lawson, where proximity to the University of Canberra, hospitals, and town centre upgrades has not yet been fully priced in.

What property type will give the best return in Canberra over 5 years as of 2026?

As of early 2026, three-bedroom townhouses in well-connected middle-ring suburbs are expected to give the best total return over five years, combining solid capital growth with strong rental demand from families and professionals.

The projected five-year total return for townhouses, including both appreciation and rental income, is estimated at 45% to 55%, compared to roughly 40% for houses and 35% for apartments, making them the standout performer on a risk-adjusted basis.

The main structural trend favoring townhouses is affordability pressure, as detached houses become increasingly out of reach for median-income buyers, pushing demand into the townhouse segment where supply is also limited.

For buyers seeking the best balance of return and lower risk over five years, two-bedroom apartments in established employment hubs like the City, Belconnen, or Woden offer dependable rental income and moderate growth without the higher entry cost of houses.

How will new infrastructure projects affect property prices in Canberra over 5 years?

The top three major infrastructure projects expected to impact Canberra property prices over the next five years are Light Rail Stage 2 extending from City to Woden, the Canberra Hospital Expansion and health precinct development, and ongoing Molonglo Valley road and community infrastructure upgrades.

Properties near completed or confirmed infrastructure in Canberra typically command a price premium of 5% to 15% compared to similar homes further away, with the exact uplift depending on proximity, the type of amenity, and how well the project is communicated to buyers.

The neighborhoods that will benefit most from these infrastructure developments include Phillip and Mawson near the hospital precinct, Franklin and Mitchell along the northern light rail corridor, and Denman Prospect and Wright in Molonglo Valley where new schools and shops are opening.

How will population growth and other factors impact property values in Canberra in 5 years?

Canberra's population is projected to grow at about 1.3% per year over the next five years, adding roughly 8,000 new residents annually, which will create sustained housing demand and support property values even if broader economic conditions soften.

The demographic shift with the strongest influence on Canberra property demand is the continued inflow of young professionals and public sector workers with above-average incomes, who prefer well-located housing near employment hubs and transport.

Migration patterns over the next five years are expected to favor Canberra modestly, with net overseas migration remaining the primary growth driver while interstate flows are roughly balanced, meaning steady but not explosive demand pressure.

The property types and areas that will benefit most from these demographic trends are townhouses and apartments in the inner north and Woden corridors, which suit younger households seeking space without committing to a full detached house in the outer suburbs.

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 is the 10 year property price outlook in Canberra?

What is the 10-year property price prediction for Canberra as of 2026?

As of early 2026, cumulative property price growth in Canberra over the next 10 years is expected to reach approximately 45%, taking the median dwelling value from around A$890,000 today to roughly A$1.29 million by January 2036.

Forecasts range from a conservative 30% cumulative gain if affordability ceilings bite hard or economic shocks occur, up to an optimistic 60% if population growth accelerates and supply constraints persist, with most scenarios clustered around 40% to 50%.

That translates to a projected average annual appreciation rate of roughly 3.8% per year over the next decade, slightly lower than the five-year outlook as affordability limits become more binding over time.

The biggest uncertainty factor in making 10-year property price predictions for Canberra is the path of national credit conditions, including both interest rates and regulatory settings like debt-to-income caps, which can shift dramatically over a decade.

What long-term economic factors will shape property prices in Canberra?

The top three long-term economic factors that will shape Canberra property prices over the next decade are public sector employment and wage growth, national credit conditions including interest rates and lending regulations, and housing supply execution relative to population growth.

The factor with the most positive long-term impact on Canberra property values is the city's stable public sector employment base, which provides high and predictable incomes that support both borrowing capacity and willingness to pay premium prices for housing.

The factor posing the greatest structural risk to Canberra property values over the long term is a sustained shift to remote work that reduces the need to live near government offices, which could weaken demand from the public sector workforce that anchors the market.

You'll also find a much more detailed analysis in our pack about real estate in Canberra.

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
Reserve Bank of Australia (RBA) - Cash Rate Decision	Official source for Australia's policy interest rate that shapes mortgage costs.	We used it to anchor the interest-rate backdrop affecting buyer borrowing power. We treat RBA statements as the ground truth for current rate levels.
RBA Cash Rate Target Statistics	Official time series for Australia's cash rate target history.	We cross-checked policy rate levels and tracked how rate changes flow through to property borrowing capacity over time.
Westpac IQ Economics	Major bank research team with transparent macro reasoning and rate forecasts.	We used it to triangulate a realistic base case for rates in 2026. We treat bank forecasts as credible scenarios, not certainties.
Australian Bureau of Statistics (ABS) - Lending Indicators	Australia's official statistics agency for housing finance activity data.	We quantified demand-side heat via changes in new dwelling loan commitments. We cross-referenced it with price data to judge whether demand is accelerating.
ABS - Total Value of Dwellings	Official publication covering dwelling stock values and national price context.	We used it for national context on how broad the housing upswing is. We also sanity-checked private indexes against ABS data.
APRA - Quarterly ADI Statistics	Banking regulator publishing system-wide lending and balance-sheet data.	We described credit conditions and mortgage credit expansion. We cross-checked with ABS Lending Indicators to avoid single-source bias.
Reuters - APRA DTI Cap Reporting	Globally recognized wire service reporting on regulator actions with sourcing.	We incorporated the concrete, dated policy change affecting buyer borrowing power. We treat it as a downside-risk factor in 2026 forecasts.
NAB - Canberra Property Market Insights	Major bank distributing figures from Cotality (CoreLogic), a leading data provider.	We used it for near-real-time Canberra value trends and investor metrics like yields. We cross-referenced with Domain to reduce bias.
Domain - House Price Report	Widely used national research series with consistent methodology.	We used it for Canberra median sale prices and quarterly changes. We cross-checked against value-based measures from other sources.
SQM Research - Weekly Rents	Long-running rental series with published methodology and frequent updates.	We quantified rent levels for houses and units to calculate implied gross yields. We combined with purchase prices for investor analysis.
SQM Research - Vacancy Rates	One of the most-cited vacancy rate trackers in Australia with consistent method.	We judged rental tightness as a key driver for investor demand and unit price support. We cross-checked with rent growth data.
ABS - Regional Population	Official source for population and migration statistics driving housing demand.	We explained why demand pressure persists even when rates are high. We aligned population trends with supply narratives.
ACT Treasury - Population Projections	Territory government's official demographic forecasts for planning purposes.	We anchored long-term demand projections showing Canberra growing to 700,000 by 2050. We used it to stress-test price forecasts.
ACT Government - Built for CBR (Light Rail)	Official project page for major transport infrastructure in Canberra.	We identified which corridors are most likely to benefit from improved access. We translated that into suburb growth predictions.
ACT Government - Canberra Hospital Master Plan	Official page for one of the territory's biggest health infrastructure upgrades.	We explained localized demand around large employment hubs. We used it to support five-year suburb calls around Woden and Phillip.
ACT Planning - Housing Supply and Land Release Program	Official planning program describing future dwelling delivery targets.	We framed the supply valve for Canberra. We combined with demand indicators to judge whether price pressure is structural.
Allhomes - Suburb Price Research	Domain-affiliated platform with Canberra-specific suburb data and reporting.	We identified fast-growing suburbs like Palmerston and Curtin. We validated suburb momentum against other data sources.
Region Canberra - Market Forecasts	Local news outlet reporting on Domain forecasts with expert commentary.	We incorporated the 5% house price growth forecast for 2026. We cross-referenced with bank and analyst projections.
OpenAgent - Canberra Market Profile	Real estate platform aggregating CoreLogic data and market commentary.	We used it for monthly value movements and historical context. We validated trends against official ABS and Domain data.
Canberra Times - Property Market Analysis	Major local newspaper with dedicated property reporting and expert interviews.	We incorporated analysis on unit oversupply and demand dynamics. We used it to understand local market sentiment.