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
Canberra's property market presents a mixed picture for buyers in 2025, with houses showing modest growth potential while units face continued headwinds.
The nation's capital offers stable employment through government jobs, quality infrastructure, and strong rental demand, but high house prices and market uncertainty require careful consideration before buying.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Canberra's property market in 2025 shows houses expected to grow 3-6% while units may decline 2-6%, with foreign buyers banned from established homes until March 2027.
Buying makes sense for long-term residents seeking units under $600K, but renting remains more affordable for houses, with mortgage repayments consuming over 60% of typical incomes.
| Property Type | 2025 Median Price | Expected Growth |
|---|---|---|
| Houses | $1,049,067 | +3% to +6% |
| Units | $531,784 | -2% to -6% |
| Rental Yield (Gross) | 3.6-4.2% | Stable |
| Vacancy Rate | 1.1-1.6% | Very Low |
| Foreign Buyer Ban | Established Homes | Until March 2027 |
| Best Investment Areas | Belconnen, Gungahlin | High Rental Demand |
| Entry-Level Budget | $350K-$600K | Units/Small Townhouses |
What kinds of property can you buy in Canberra in 2025, and what are the rules for overseas buyers?
You can buy detached houses, townhouses, apartments, and vacant land in Canberra, but foreign buyers face strict new rules from April 2025.
Detached houses remain the most common property type in established suburbs with varying block sizes, while townhouses and terraces are becoming more available due to recent zoning changes that now permit 'missing middle' housing in more suburban areas. Apartments concentrate in central locations like Belconnen, Gungahlin, and the City Centre, with new developments focusing on tech-smart, energy-efficient designs.
For overseas buyers, the rules have tightened significantly. Foreign purchasers can only buy new dwellings with FIRB approval, vacant land if they build within four years, or properties for redevelopment that increases housing supply. Established homes are completely banned for foreign buyers from April 1, 2025 to March 31, 2027, though permanent residents and New Zealand citizens remain exempt from this ban.
It's something we develop in our Australia property pack.
The key distinction is between temporary residents (who face the ban) and permanent residents or citizens (who can buy freely), making visa status crucial for property purchasing eligibility in 2025.
Is it smarter to rent or buy in Canberra right now, depending on your goals?
Renting is significantly more affordable than buying houses in Canberra, but the gap narrows considerably for units.
For houses, the median price of $968,907 translates to weekly mortgage repayments of $1,162, consuming 60.3% of a typical ACT income, while renting costs just $716 weekly or 37.2% of income. This massive affordability gap makes renting houses the clear choice for most people unless building long-term equity is paramount.
Units present a different story with median values of $583,486 requiring $700 weekly repayments (36.3% of income) versus $581 in rent (30.1% of income). The smaller gap makes buying units viable for those planning to stay long-term and wanting to build equity rather than pay someone else's mortgage.
Rentvesting has emerged as a popular strategy where people rent in preferred lifestyle locations while investing in more affordable suburbs elsewhere. If flexibility or short-term living is your goal, renting remains smarter, but investors benefit from Canberra's tight rental market with low vacancy rates around 1.1-1.6% and solid yields of 3.6-4.2%.
The decision ultimately depends on your timeline: rent if you need flexibility or can't afford the hefty house deposits, buy a unit if you're settling long-term, or consider rentvesting to get the best of both worlds.
How have Canberra's property prices shifted over recent years, what's the current state, and what's forecasted for 2025?
Canberra's property market experienced dramatic growth from 2020-2022 before cooling significantly, with mixed forecasts for 2025.
House prices surged from approximately $720,000 in 2020 to over $1 million by 2022, representing nearly 40% growth during the pandemic boom. However, the market has since corrected, with median house prices as of March 2025 sitting at $1,049,067 (down 2.3% year-on-year) and units at $531,784 (down 10.6% year-on-year).
| Forecaster | House Price Prediction 2025 | Unit Price Prediction 2025 |
|---|---|---|
| KPMG | +6% | +4.1% |
| SQM Research | -6% | -6% |
| Domain | +3% to +5% | -2% to -4% |
| Propertyology | Flat to slightly negative | Flat to negative |
| Current Median (March 2025) | $1,049,067 | $531,784 |
| YoY Change | -2.3% | -10.6% |
| Peak to Current | Furthest from peak among capitals | Significant correction |
The conflicting forecasts reflect genuine market uncertainty, with optimists citing improving auction clearance rates and government employment stability, while pessimists point to oversupply in the unit market and Canberra being furthest from its price peak among Australian capitals.
What are the current market trends in Canberra's real estate—are we seeing growth, stagnation, or decline?
Canberra's property market in 2025 shows divergent trends: modest growth for houses in select areas, while units face continued stagnation or decline.
Houses in family-friendly suburbs with infrastructure projects show resilience, particularly in areas like Wright, Molonglo Valley, and parts of Gungahlin where new amenities drive demand. Auction clearance rates have improved from their 2023 lows, suggesting renewed buyer interest, though overall transaction volumes remain below historical averages.
The unit market tells a different story with oversupply issues and weak investor demand creating downward pressure on prices. Units have fallen 10.6% year-on-year and most forecasters expect further declines of 2-6% through 2025, making Canberra's apartment market one of the weakest among Australian capitals.
The rental market provides a bright spot with vacancy rates at just 1.1-1.6% and rising rents supporting investor returns. This tight rental market reflects Canberra's stable employment base of public servants and students, though it hasn't translated into unit price growth due to the oversupply of new apartments.
Overall, the market exhibits characteristics of late-cycle stagnation rather than dynamic growth or sharp decline, with pockets of strength in established houses offset by ongoing unit market weakness.
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Which areas in Canberra are affordable, up-and-coming, or high-end—and what are their individual advantages and drawbacks?
Canberra's suburbs divide into distinct price tiers, each offering different lifestyle benefits and investment potential.
| Category | Key Suburbs | Price Range | Main Advantages | Main Drawbacks |
|---|---|---|---|---|
| Affordable | Chisholm, Kambah, Wanniassa, Calwell, Evatt | $700K-$850K houses | Family-friendly, established amenities, good schools | 20-30min from CBD, older housing stock |
| Up-and-coming | Wright, Molonglo Valley, Dunlop, Amaroo, Bonner | $800K-$1M houses | New infrastructure, modern homes, growth potential | Still developing, construction disruption |
| High-end | Griffith, Red Hill, Deakin, Campbell, Yarralumla | $1.5M-$3M+ houses | Blue-chip location, leafy streets, prestige | Very expensive, limited stock |
| Trendy Inner | Braddon, Lyneham, Dickson, City Centre | $500K-$700K units | Walkable, cafes, nightlife, young professionals | High density, noise, limited parking |
| Government Hubs | Barton, Parkes, Russell | $600K-$800K units | Walk to work, stable tenant base | Quiet weekends, limited retail |
Affordable suburbs like Kambah and Wanniassa offer excellent value for families with established shopping centers, schools, and community facilities, though the 20-30 minute commute to the city center may deter some buyers.
Up-and-coming areas in Molonglo Valley and Gungahlin's newer suburbs attract buyers seeking modern homes with contemporary designs, though residents must tolerate ongoing construction and developing amenities. High-end suburbs command premium prices but offer unmatched prestige, tree-lined streets, and proximity to top schools and embassies.
What's the full process for buying property in Canberra, from finding listings to signing contracts and paying taxes?
Buying property in Canberra follows a structured process with some ACT-specific requirements that differ from other Australian states.
Start by researching properties on Allhomes (Canberra's dominant platform), Zango, Domain, or realestate.com.au, while getting your finances organized with pre-approval from a lender. Most buyers need a 10-20% deposit, and you should factor in additional costs like stamp duty (called conveyance duty in ACT), legal fees, and inspections.
Once you find a suitable property, arrange inspections and crucially, review the mandatory building and pest reports that sellers must provide in the ACT. Make your offer through private treaty, auction, or tender, with private treaty sales including a five-day cooling-off period after contract exchange.
After your offer is accepted, you'll exchange contracts and pay a deposit (usually 5-10%), then work with your conveyancer through the settlement period (typically 30-90 days) to complete final inspections, arrange insurance, and transfer ownership. The ACT's unique leasehold system means you're technically leasing land from the government for 99 years, though this functions like freehold ownership in practice.
It's something we develop in our Australia property pack.
Key ACT-specific elements include mandatory vendor-provided building reports, the leasehold land system, and conveyance duty rates that vary based on property value and buyer circumstances.
Where do locals and investors typically search for property—are there agents or platforms that are trusted?
Allhomes dominates Canberra's property search landscape, with most locals starting their property hunt on this ACT-focused platform.
While national sites like Domain and realestate.com.au have presence in Canberra, Allhomes remains the go-to resource with the most comprehensive local listings and suburb profiles specifically tailored to the ACT market. Zango has emerged as a growing alternative, particularly popular in Gungahlin and Belconnen areas.
- home.byholly - Known for personalized service and strong negotiation skills
- Capital Buyers Agency - Specialist buyers' agents with deep market knowledge
- McCann Properties - Established agency with strong inner-suburb presence
- Independent Property Group - Large agency with extensive market reach
- McIntyre Property - Premium property specialists in high-end suburbs
For market insights, locals rely on Region Canberra Property for news updates, OpenAgent for agent comparisons, and the quarterly Domain and Allhomes property reports. Many successful buyers recommend using buyer's agents in Canberra's competitive market, especially for interstate purchasers unfamiliar with local conditions.
The key to success is combining online research through Allhomes with engagement of reputable local agents who understand Canberra's unique government-influenced market cycles and suburb dynamics.
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 kind of property can you buy at different budget levels—say $150K, $350K, or $600K?
Property options in Canberra vary dramatically across price points, with $150K barely entering the market while $600K opens up genuine choices.
| Budget | Property Type | Location Options | What to Expect |
|---|---|---|---|
| $150K | Vacant land (rare) or parking spaces | Far outskirts or regional ACT | Extremely limited options, mostly non-residential |
| $350K | Studio or 1-bed older apartments | Belconnen, Tuggeranong outer areas | 1970s-1980s units, basic amenities, good for first buyers |
| $600K | 2-bed apartments or small townhouses | Most suburbs except premium areas | Modern units in town centers, older houses in outer suburbs |
| $800K | 3-bed townhouses or older houses | Established middle-ring suburbs | Family homes needing updates, newer townhouses |
| $1M+ | 4-bed houses or premium apartments | Most areas except elite suburbs | Modern family homes, renovated properties, some inner areas |
At $150K, you're essentially priced out of Canberra's residential market, with only parking spaces or potentially vacant land in remote areas available. The $350K mark represents the true entry point, buying older one-bedroom apartments in suburbs like Belconnen or Tuggeranong, though these often need updating.
The $600K budget opens up real choices including two-bedroom apartments in town centers, older three-bedroom houses in outer suburbs like Kambah or Wanniassa, or small townhouses in developing areas. This price point offers the best value proposition for first-home buyers or investors seeking positive rental returns in Canberra's tight rental market.
What are some mistakes that new buyers commonly make in Canberra, and how can you avoid them?
First-time buyers in Canberra often underestimate the true cost of property ownership and rush into purchases without proper preparation.
The biggest mistake is skipping pre-approval and house hunting based on optimistic borrowing assumptions, only to face disappointment when finance falls through. Always secure pre-approval first and remember to budget for conveyance duty (stamp duty), legal fees, building inspections, insurance, and moving costs which can add $20,000-40,000 to your purchase price.
Many buyers ignore the mandatory building and pest reports provided by vendors in the ACT, treating them as formalities rather than crucial documents. These reports can reveal expensive problems, and you should always review them carefully and consider getting independent inspections for older properties.
Overlooking future development plans represents another costly error. Check the ACT Planning website for proposed developments that could affect your property's value, views, or lifestyle. That peaceful block next door might be zoned for medium-density housing.
New buyers often focus solely on price without considering location factors like school catchments, public transport access, and commute times. In Canberra's government-employment dominated market, proximity to major departments in Civic, Barton, or Russell can significantly impact both livability and resale value.
What's the ongoing cost of living for homeowners in Canberra—maintenance, utilities, council rates, and general expenses?
Homeownership in Canberra comes with substantial ongoing costs that can surprise buyers focused only on mortgage repayments.
Council rates in Canberra typically range from $2,000-3,000 annually for units to $3,000-5,000 for houses, depending on property value and location. The ACT government uses rates as a primary revenue source since they're phasing out stamp duty, making annual rates higher than most other Australian cities.
It's something we develop in our Australia property pack.
Utilities for a family home average $2,500-4,000 yearly, with Canberra's cold winters driving heating costs significantly higher than coastal cities. Budget 1-2% of your property's value annually for maintenance - that's $10,000-20,000 for a million-dollar home to cover everything from gutter cleaning to major repairs.
Strata fees for apartments and townhouses add another layer, ranging from $2,000-6,000 annually for basic schemes to over $10,000 for complexes with pools, gyms, and concierges. These fees cover building insurance, maintenance, and sinking funds for major repairs.
Combined with mortgage repayments, insurance, and other costs, total homeownership expenses in Canberra can easily reach $50,000-70,000 annually for a median-priced house, making accurate budgeting essential before purchase.
If you plan to rent out long-term, which areas are profitable, who's your typical renter, what do they look for, and what income can you expect?
Canberra's rental market offers solid returns with government workers, students, and young professionals driving consistent demand.
The most profitable areas for long-term rentals include Belconnen, Gungahlin, Tuggeranong town centers, and newer suburbs like Molonglo Valley, Wright, and Mawson. These areas combine good transport links, shopping amenities, and proximity to major employment hubs while offering better yields than expensive inner suburbs.
| Property Type | Weekly Rent Range | Gross Yield | Typical Tenants | Key Demands |
|---|---|---|---|---|
| 1-bed apartment | $450-550 | 4.0-4.5% | Young professionals, students | Near transport, modern kitchen |
| 2-bed apartment | $550-650 | 3.8-4.2% | Couples, small families | Parking, storage, balcony |
| 3-bed house | $650-800 | 3.5-3.8% | Families, group shares | School proximity, yard, garage |
| 4-bed house | $750-950 | 3.4-3.6% | Large families, executives | Multiple living areas, location |
Your typical renters are public servants (largest group), defence personnel, university staff and students, and young professionals in consulting or NGOs. They prioritize proximity to government precincts in Civic, Barton, and Russell, with good public transport access being crucial since many rely on the rapid bus network.
With vacancy rates at just 1.1-1.6%, you can expect minimal vacancy periods and strong tenant demand, particularly for well-maintained properties near transport routes and employment centers offering steady rental income in Canberra's stable market.
If you're looking at short-term rentals, what are the best neighborhoods, what are the legal requirements, and how much income and occupancy can you realistically get?
Short-term rentals in Canberra can generate strong returns in the right locations, particularly during parliamentary sitting weeks and major events.
The best neighborhoods for Airbnb and short-stays include Braddon, Lyneham, and Dickson in the Inner North, offering walkable access to restaurants and cafes; the City Centre and NewActon for business travelers; and Kingston for its lakeside appeal. These areas achieve the highest nightly rates ($150-300) and occupancy rates (70-85%) due to proximity to government, universities, and attractions.
Legal requirements in the ACT are relatively straightforward compared to other cities. You must comply with ACT short-stay accommodation regulations, ensure your property meets safety standards, and check building by-laws for apartments as some strata schemes prohibit short-term rentals. Unlike Sydney or Melbourne, Canberra doesn't impose strict day limits on short-term rentals.
Income varies significantly by location and property type. A well-positioned 2-bedroom apartment in Braddon might gross $40,000-60,000 annually with 75% occupancy, while outer suburban properties achieve much lower returns. Peak periods include parliamentary sitting weeks, university terms, Floriade, and major sporting events.
Realistic expectations show occupancy ranging from 60% in outer areas to 85% in prime locations, with significant seasonal variation. Winter months see lower demand except during parliamentary sittings, while spring and autumn peak with events and pleasant weather attracting visitors to the nation's capital.
Conclusion
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.
Canberra's property market in 2025 presents a nuanced opportunity for buyers willing to navigate its unique dynamics.
While house prices remain elevated and forecasts vary wildly, the stable government employment base, tight rental market, and quality infrastructure provide underlying support that distinguishes Canberra from more volatile markets. Success requires careful suburb selection, realistic budgeting including substantial ongoing costs, and understanding whether you're better served by patient renting or strategic buying based on your personal timeline and financial position.