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
Why is Canberra emerging as a prime destination for property investment in 2025? Is it the stable rental yields, the growing population, or the relative affordability compared to other Australian cities? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Canberra's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Canberra’s high average income levels make its real estate market strong
Canberra's real estate market is thriving thanks to its high average income levels.
With one of the highest median household incomes in Australia, residents have more money to spend on housing, whether buying or renting. This financial capability naturally boosts the real estate market, making it a hot spot for potential buyers.
Canberra's economy is also performing well, with low unemployment rates contributing to stable income levels. The strong public sector, which saw a 3.6% increase in employment between June 2023 and June 2024, offers stable and well-paying jobs, ensuring people have the means to invest in real estate.
The city's diverse economy, with growth in sectors like technology and education, supports these high income levels. This diversity not only provides job opportunities but also attracts a skilled workforce, leading to higher disposable incomes. Residents can afford to invest in property, whether for personal use or as an investment.
High disposable income levels mean that residents can afford to invest in property, further supporting the real estate market. This economic environment makes Canberra an attractive place for property investment.
Sources: Canberra Daily, The RiotACT
2) As the capital, Canberra attracts many government workers who need housing
Canberra's role as Australia's capital ensures a steady stream of government employees needing homes.
With many public sector jobs based here, the city is a magnet for those working in government. The Australian Bureau of Statistics highlights that the Commonwealth government employs a large number of people, which bolsters Canberra's public sector workforce. This influx of workers keeps the housing market lively and competitive.
Canberra's population is on the rise, and the ACT Government expects it to grow by over 330,000 people by 2060. This growth means more demand for housing, especially as government employees and their families settle in the city. The pressure on the housing market is palpable, with more people looking for places to live.
Renting is a popular choice among government workers, particularly those on short-term contracts. This preference keeps the rental market buzzing. The transient nature of government contracts means many employees opt for renting, ensuring a steady demand for rental properties.
Canberra's closeness to major government departments and agencies makes it a central hub for public sector jobs. This proximity not only attracts workers but also drives the need for housing in the area. The city's strategic location is a key factor in its housing dynamics.
Sources: Australian Bureau of Statistics, Canberra Daily, LJH Commercial
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.
3) With Canberra's population growing steadily, there's a rising demand for housing
Canberra's population has been growing steadily, adding over 7,000 people each year since 2011.
This growth is largely due to a mix of natural increase and migration. Natural increase, which is the difference between births and deaths, accounts for nearly half of this rise. Meanwhile, both overseas and interstate migration have significantly boosted the numbers, drawing more people to the city.
Canberra's economy is thriving, which is another magnet for newcomers. The city's strong economic performance has made it an attractive place to live, further accelerating population growth and driving up housing demand.
Interestingly, Canberra boasts a high fertility rate of 1.83 births per woman, surpassing the national average. This has led to a record number of births, adding to the city's vibrant and growing community.
With more families settling in, the demand for housing continues to rise. The combination of a high birth rate and migration means there's a constant need for new homes to accommodate everyone.
For anyone considering buying property here, it's worth noting that the city's growth shows no signs of slowing down. This ongoing expansion is a key factor in the robust housing market.
Sources: ACT Government Infrastructure Plan, ACT Planning Strategy, The Canberra Spatial Plan
4) Canberra’s cultural spots, such as museums and galleries, make it easy to find short-term renters
Canberra's cultural hotspots, like museums and galleries, are a major attraction for tourists and short-term renters.
In 2023-24, the National Gallery of Australia welcomed over 2.7 million visitors, many of whom came specifically for its exhibitions. This highlights the strong interest in Canberra's cultural offerings.
Tourists are spending more in Canberra than ever, with a record $3.66 billion spent in 2023, significantly boosting the local economy. This surge is partly due to cultural attractions and events like Floriade, which drew over 433,000 attendees in 2023.
Short-term rentals, such as those on Airbnb, are thriving in Canberra. A typical listing is booked for 263 nights a year, indicating that many visitors prefer staying near cultural institutions for easy access to the city's attractions.
The proximity to places like the National Gallery of Australia and the National Museum of Australia makes these rentals particularly appealing, offering convenience for cultural exploration.
Sources: National Gallery of Australia Annual Report 2023-24, The RiotACT, Airbtics
5) Canberra’s focus on arts and culture makes neighborhoods more appealing and boosts property values
Investing in arts and culture can make neighborhoods more appealing and boost property values.
Take Canberra, for instance, where the local government pours $9 million annually into arts facilities. This investment creates a lively community vibe that draws people who crave culturally rich living spaces. Imagine strolling through a neighborhood buzzing with art festivals and cultural events—it's no wonder folks are eager to call such places home.
Consider the National Multicultural Festival in 2023, which attracted nearly 274,000 attendees and pumped $20.8 million into the local economy. Events like these not only bolster the economy but also enhance the city's image as a diverse and multicultural hub. This reputation makes the area more enticing to potential residents and investors, sparking a demand for property.
On top of that, new cultural infrastructure projects like the Canberra Theatre Redevelopment and the Kingston Arts Precinct are popping up. With budgets of $13.5 million and $78 million respectively, these projects are adding more cultural spaces and opportunities. As these neighborhoods become cultural hotspots, property values often rise because people are willing to pay more to live in such dynamic environments.
Sources: artsACT, Canberra Daily
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6) Canberra’s closeness to ski resorts and national parks gives you unique rental opportunities for vacationers
Canberra is a hotspot for vacation rentals thanks to its closeness to ski resorts and national parks.
In recent years, the short-term rental market in Canberra has boomed as more tourists flock to the area. This surge is reflected in the rising occupancy rates for vacation rentals, which cater to travelers looking for unique experiences. In 2023, Canberra saw a record-breaking 5.8 million visitors who spent $3.8 billion, the highest visitor expenditure in 25 years. This influx is largely due to the city's proximity to popular ski resorts like Perisher and Thredbo.
Just a short drive away, Kosciuszko National Park offers a haven for outdoor enthusiasts with activities like skiing and snowboarding. Its closeness to Canberra makes it a go-to spot for those craving nature-based adventures. Domestic travel trends show a strong preference for such activities, making Canberra an appealing destination for tourists eager to explore the great outdoors.
The ACT Government is actively promoting Canberra as a gateway to these natural wonders through various tourism initiatives. These efforts aim to boost visitor numbers and spending, further fueling the short-term rental market. Tourists today are not just looking for a place to crash; they want accommodations that offer memorable and authentic experiences.
With its strategic location, Canberra offers a unique blend of urban and natural attractions, making it a prime spot for vacation rentals. The city's proximity to both ski resorts and national parks provides a diverse range of activities for visitors, from hitting the slopes to hiking scenic trails.
As more travelers seek out these experiences, the demand for short-term rentals in Canberra continues to rise, offering lucrative opportunities for property investors. Whether it's a cozy cabin near the slopes or a chic apartment in the city, the options are as varied as the landscapes surrounding Canberra.
Sources: Tourism Research Australia, ACT Government Media Releases, Ovolo Hotels
7) With efficient public transport, Canberra’s well-planned infrastructure makes properties more desirable
Canberra's infrastructure is exceptionally well-planned, making public transport efficient and properties more appealing.
The ACT light rail is a shining example, having carried 16.5 million passenger trips since it started. This accounts for 20% of all public transport trips in the city, showing its popularity and effectiveness among residents.
The government is committed to enhancing public transport through the Transport for Canberra initiative. This includes expanding the bus fleet and improving infrastructure like bus lanes and traffic signal priority, ensuring the system is both efficient and reliable for daily commuters.
Residents are quite satisfied with the public transport services. Surveys reveal that a significant number of users rate their experience with the light rail very positively, highlighting its reliability and ease of use.
Canberra's public transport system is not just about getting from point A to B; it's about making the journey pleasant and dependable. This is why many find the city an attractive place to live.
Sources: Transport ACT, Transport ACT, Canberra Daily
8) International embassies in Canberra drive demand for luxury rental properties
In Canberra, international embassies drive demand for high-end rentals.
Take the Barton precinct, for example, where vacancy rates are impressively low at just 0.5% as of January 2024. This is a stark contrast to other capital cities, showing just how much people want to live near these embassies. The area is buzzing with activity, and the demand for premium housing is through the roof.
Over in the Civic precinct, rental prices are on the rise. Prime net face rents hit an average of $446 per square meter in March 2024, marking a 1.7% increase from last year. This uptick shows that people are willing to pay a premium to be close to diplomatic missions, where the action is.
Then there's the influx of expatriates and diplomatic staff. These folks are on the lookout for high-end rentals, adding to the demand in embassy-heavy areas. They often prefer luxury living, with amenities like top-notch security and a short commute to work.
Surveys and testimonials from embassy staff highlight their desire for luxury living standards. They want places that offer not just comfort but also convenience, like being close to their workplaces. This preference further fuels the demand for upscale properties.
In short, the presence of international embassies in Canberra is a major factor in the thriving market for high-end rentals. The demand is strong, and the prices reflect it, making these areas highly sought after.
Sources: Tenant CS, Knight Frank March 2024 Report
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.
9) Canberra’s booming tech sector means more professionals are looking for homes nearby
Canberra's tech industry is booming, attracting professionals who want to live close to their jobs.
With more tech companies setting up shop in the city, the demand for nearby housing is on the rise. The government is backing this growth with initiatives like the $392 million Industry Growth Program, creating a business-friendly environment that draws both companies and talent.
Young professionals are flocking to Canberra, seeking homes near tech hubs to cut down on commute times. This influx is pushing up property values in these areas, as tech workers prioritize living close to work for a better work-life balance.
The local government is also investing in infrastructure to support this tech boom, making the city even more appealing. Employees in the tech sector often talk about the perks of living near their offices, like shorter commutes and being part of a lively tech community, which fuels the housing demand.
Canberra's transformation into a tech hub is not just about business; it's about lifestyle. The city's efforts to enhance its infrastructure and community vibe are paying off, making it a top choice for tech professionals who want convenience and a vibrant social scene.
As the tech industry continues to expand, the need for housing close to these new workplaces will only grow. This trend is reshaping Canberra's real estate market, turning it into a hotspot for property investment as more professionals seek to settle in the area.
Sources: CRN, ACT Government, Tech Council of Australia
10) Canberra’s strong education sector means students and staff are always looking for places to live
The city's vibrant education sector is a magnet for students and staff needing places to live.
With major universities like the Australian National University (ANU) and the University of Canberra, there's a steady influx of students and staff looking for accommodation. ANU alone had 24,767 students enrolled as of September 2021, many of whom are international students needing nearby housing. This is especially true for those coming from abroad, who often prefer to live close to campus for convenience and community support.
The international student population at ANU is on the rise, growing from 7,044 in April 2021 to 8,292 by September 2021. Most of these students hail from China, and they typically seek housing that offers both proximity to campus and a sense of community. The University of Canberra also contributes to this demand, with 1,257 full-time staff in 2023, all of whom need housing options.
There's a clear demand for student accommodation, but Australia faces a shortage of Purpose Built Student Accommodation (PBSA). This shortage is most pronounced in areas around universities, pushing up demand and occupancy rates for available housing. Students and staff prioritize nearby housing for its convenience and safety, making it a top choice for those relocating to the city for education.
Surveys show that proximity to campus is a key factor for students and staff when choosing where to live. This preference underscores the importance of having adequate housing options near educational institutions. The undersupply of PBSA means that existing accommodations are highly sought after, often leading to competitive rental markets.
As the education sector continues to grow, the need for more housing solutions becomes increasingly urgent. Universities are central to this demand, as they attract a diverse population of students and staff who require convenient living arrangements. This trend highlights the ongoing challenge of meeting accommodation needs in university cities.
Sources: ANU Demographics, Student Accommodation Demand, University of Canberra Restructure
11) Canberra’s top-notch waste management makes it a more attractive place to live
Canberra is a top choice for those seeking a high quality of life, thanks to its impressive waste management systems.
In Canberra, recycling rates soar between 75% and 80%, far surpassing the national average. This means less waste in landfills and a cleaner environment, making the city not just livable but also sustainable. The local government is pushing for even more, aiming for over 90% resource recovery by 2025. This ambitious goal is part of the ACT Waste Management Strategy, which also targets a carbon-neutral waste sector.
Canberra's waste management isn't just about numbers; it's about community satisfaction. Surveys show that residents are happy with the waste services, which speaks volumes about the city's commitment to maintaining a clean environment. The introduction of the Food Organics and Garden Organics program is a testament to Canberra's dedication to improvement, making it an even more attractive place to settle down.
What makes Canberra stand out is its strong regulatory framework that encourages good practices in waste collection and recycling. This not only benefits the environment but also enhances the city's appeal to potential residents. The city's efficient waste management systems are a key factor in attracting more people to live there.
For those considering a move, Canberra offers a unique blend of sustainability and quality of life. The city's efforts in waste management are not just about keeping the streets clean; they're about creating a community where people want to live. With such initiatives, Canberra is setting a benchmark for other cities to follow.
Sources: ACT State of the Environment 2023, Wikipedia, Banff Resident Satisfaction Survey
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12) Canberra’s focus on education and research makes its neighborhoods more desirable
Canberra is a vibrant city known for its strong focus on education and research.
With top institutions like the Australian National University and the University of Canberra, along with national research bodies such as the CSIRO, Canberra is a magnet for students and academics from all over. This makes it a bustling hub for learning and innovation.
In 2024, the school census revealed that 82,654 students were enrolled across public, Catholic, and independent schools in Canberra. This surge in student numbers shows a growing demand for quality education, reflecting the community's commitment to learning.
Canberra's residents are highly educated, with the "Smart Australians" report noting that 25% of people aged 15 to 64 hold a bachelor's degree. This is above the national average, contributing to a well-informed community.
Neighborhoods with educational facilities are particularly desirable, thanks to the city's commitment to fostering a knowledgeable community. This makes Canberra an attractive place for potential property buyers.
Sources: Canberra Times, ACT Education
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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