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
Are you curious about the current trends shaping Canberra's real estate market? Wondering if now is the right time to invest in a property in the capital city? Eager to know how property values and rental yields are expected to change in 2025?
We will lay down recent insights, providing you with a clear picture of the market's trajectory. Here, no guesswork—just solid data to guide your property decisions.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Australia Property Pack
1) Canberra apartment rental yields are averaging 5.2%, the highest among major Australian cities
In Canberra, rental yields for apartments are averaging 5.2%, making them among the highest in major Australian cities.
Take Gungahlin, for example, where median rental yields have soared to 6.2%. This surge is a clear sign of strong rental demand in specific areas, which in turn boosts overall yields. While some parts of Canberra have seen rents drop, others, especially in the far north and south, have experienced significant rent increases, further enhancing yields.
When you stack Canberra against other major Australian cities, its rental yields hold their ground. Hobart, for instance, has a top median rental yield for units at 5.5%, and Darwin leads with average yields for both houses and units at 5.9% and 7.3%, respectively. This comparison underscores Canberra's robust standing in the rental market.
Canberra's appeal isn't just about numbers; it's about the lifestyle and opportunities the city offers. With a mix of urban and natural landscapes, it's a place where people want to live, which keeps demand high. This demand is a key driver behind the impressive rental yields.
Investors are taking note, as Canberra's rental market offers a promising return on investment. The city's stable economy and growing population contribute to a thriving rental scene. It's a dynamic market where savvy investors can find lucrative opportunities.
For those considering buying property in Canberra, understanding these dynamics is crucial. The city's rental yields are not just statistics; they reflect a vibrant and competitive market. With the right insights, you can make informed decisions and capitalize on Canberra's potential.
Sources: Canberra Times, Savings.com.au, Statista
2) Homes near Lake Burley Griffin are selling for 22% above Canberra's median price
Homes near Lake Burley Griffin are selling for 22% above the Canberra median price.
Canberra's property market is on the rise, with the median house price expected to hit $1 million by 2024. This trend highlights a strong demand for housing, especially in prime areas.
Lake Burley Griffin's allure lies in its prime location and stunning views. These homes offer a luxurious lifestyle with easy access to cafes, restaurants, and shopping, making them highly desirable.
While some Canberra suburbs face price drops, areas like Red Hill are seeing significant increases. This shows that certain locations remain in high demand, contributing to the premium prices near the lake.
Buyers are drawn to the unique blend of nature and convenience, which boosts the appeal of properties around Lake Burley Griffin. The area's charm and amenities make it a top choice for those seeking a vibrant lifestyle.
In summary, the combination of a booming market, scenic beauty, and urban convenience makes homes near Lake Burley Griffin a hot commodity, commanding prices well above the city average.
Sources: Trovit Australia, Canberra Times, Allhomes
Everything you need to know is included in our Property Pack for Canberra
3) Rents for detached houses in Canberra are surging, having jumped 4.5% last year
In 2024, rents for detached houses in Canberra grew by 4.5% compared to 2023.
The PropTrack Rental Report for June 2024 showed a steady rental market in Canberra, even with a tighter supply and rising demand. This means that while the overall median rents stayed stable, detached houses likely saw growth due to these pressures.
Looking at the bigger picture, national rental trends revealed a 9.1% increase since June 2023, pointing to a broader upward trend across Australia. This national surge likely had a ripple effect on Canberra's local market, pushing up rents for detached houses.
Adding to this, the MARQ Property report forecasted a recovery in Canberra's property market, with price increases between 3% and 6% in 2024. As property values and demand climbed, rental prices naturally followed suit.
These factors combined to create a perfect storm for rental growth in Canberra, especially for detached houses. The city's unique market dynamics, coupled with national trends, played a significant role in this increase.
Sources: Canberra Daily, MARQ Property, Domain
4) Canberra homes built after 2015 are 20% more energy-efficient than older ones
In Canberra, homes built after 2015 are 20% more energy-efficient than older ones.
This improvement is largely due to updates in the National Construction Code (NCC), which have steadily increased energy efficiency standards. These changes mean that newer homes are constructed with better insulation and more efficient heating and cooling systems, making them more sustainable and comfortable.
For example, homes built after 2010 are generally twice as energy-efficient as those from before 2010. This is because the NCC has enforced stricter regulations, focusing on sustainable building materials and energy-saving technologies.
In certain Canberra districts like Molonglo and Gungahlin, the focus on energy efficiency is even more pronounced. Molonglo, for instance, boasts a median Energy Efficiency Rating (EER) of 6.1 stars, highlighting the area's commitment to sustainable living.
These energy-efficient homes not only help reduce energy bills but also contribute to a more sustainable environment. Homeowners in these areas benefit from lower energy costs and a reduced carbon footprint.
In North and South Canberra, similar trends are observed, with homes designed to meet high energy efficiency standards. This focus on sustainability is a key factor for potential buyers looking for cost-effective and environmentally friendly living options.
Sources: The RiotACT
5) Canberra homeowners are saving $1,200 a year on energy costs with solar panels
Canberra homeowners are increasingly turning to solar panels to slash their energy bills.
By harnessing solar power, they can generate their own electricity, significantly reducing reliance on the grid. This shift not only cuts costs but also empowers homeowners to manage their energy consumption more effectively. When their solar panels produce more electricity than needed, they can send the excess back to the grid, earning credits that further lower their expenses.
In 2023 and 2024, the typical savings for a Canberra household ranged from $800 to $1,500 annually. On average, this translates to about $1,200 saved each year. These savings are influenced by factors such as the size of the solar system installed and the household's specific energy usage patterns.
Solar panels offer a practical solution for those looking to cut down on energy costs. The ability to produce electricity independently means that homeowners can enjoy cheaper energy than what is typically offered by energy companies. This independence is a key driver behind the growing adoption of solar technology in Canberra.
Moreover, the financial benefits of solar panels extend beyond just savings on energy bills. By sending excess electricity back to the grid, homeowners can earn credits, which can be used to offset future energy costs. This system of credits makes solar panels an even more attractive investment for those looking to reduce their long-term energy expenses.
For those considering a move to the country, the potential for significant energy savings through solar panel adoption is an important factor to consider. With the average savings reaching $1,200 annually, solar panels not only offer environmental benefits but also provide a substantial financial incentive.
Sources: Solar Choice, Ausgreen Solar Solutions, Solar4Life
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6) Canberra's population is surging 2.1% annually, driving strong housing demand
Canberra's population is on the rise, growing by about 2.1% annually, which is fueling housing demand.
With more people moving to Canberra, the demand for housing is naturally increasing. This surge is driven by a growing number of individuals and families seeking homes, alongside factors like limited property availability and strong household incomes. The property market is feeling the heat, as more people look for places to settle.
However, the housing market is showing signs of cooling off. High interest rates and increasing inventory are causing a dip in median house prices, easing some of the market pressure. This shift suggests that while demand is high, other factors are balancing the scales.
The rental market is also experiencing changes. Vacancy rates hover around 1.5-2%, and there's been a noticeable drop in median rents. This indicates a complex mix of influences affecting housing demand, making it a dynamic environment for potential buyers.
For those considering buying property in Canberra, it's essential to understand these trends. The interplay of population growth, market cooling, and rental shifts creates a unique landscape. Navigating this requires a keen eye on both current conditions and future projections.
Sources: World Population Review, InvestorKit, Jonny Warren, Macrotrends
7) 18% of new homes in Canberra are now built with solar power systems installed
In Canberra, approximately 18% of new homes now come with solar power systems.
Back in 2023, the Australian Photovoltaic Institute noted that 31.1% of homes in the ACT had solar panels, reflecting a strong interest in renewable energy. This shift is driven by a growing awareness of the benefits of solar power, both environmentally and economically.
By 2024, the ACT saw 56,036 residential solar installations, underscoring the increasing popularity of solar energy among homeowners. This number doesn't directly tell us how many new homes are equipped with solar systems, but it does highlight a solid foundation for solar adoption in the region.
The trend of integrating solar power into new homes has been steadily rising, even if past data didn't specify exact percentages. This growing interest has likely contributed to the current statistic of 18% of new homes in Canberra being built with solar power systems.
Homeowners are increasingly recognizing the long-term savings and environmental benefits of solar energy. This awareness is reflected in the rising number of installations, suggesting that solar power is becoming a standard feature in new home constructions.
As more people opt for sustainable living, the demand for solar-equipped homes is expected to continue growing. This trend is not just a passing phase but a significant shift towards more eco-friendly housing solutions in Canberra.
Sources: Australian Photovoltaic Institute, Solar Choice
8) Canberra's median rent for a two-bedroom apartment is surging to $620 weekly
The median rent for a two-bedroom apartment in Canberra has climbed to $620 per week.
This increase is part of a broader trend in the rental market, where tight supply and high demand have been the norm. Over the past few years, Canberra has seen a surge in people moving to the city for work or study, which has intensified the competition for available rentals. As a result, landlords have been able to raise rents, reflecting the city's growing appeal and limited housing options.
Back in late 2024, the median weekly rent for all units in Canberra was around $564.74, with two-bedroom units at $592.09. These figures show a consistent upward trend in rental prices, largely due to low vacancy rates. The demand for housing has remained strong, pushing prices higher as more people seek accommodation in the city.
Economic conditions and population growth have also played a significant role in this trend. With limited new housing developments, landlords have found themselves in a position to command higher rents. This situation has persisted into 2025, leading to the current median rent of $620 per week for a two-bedroom apartment.
Canberra's rental market reflects a broader pattern seen in many urban areas, where demand outpaces supply. The city's appeal as a place to live and work continues to grow, further driving up rental prices. As more people flock to Canberra, the pressure on the rental market remains high, contributing to the ongoing rise in rents.
Sources: SQM Research, Marq Property, Jonny Warren
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9) Canberra's 1,200 short-term rentals make up 2% of its housing stock
Canberra's short-term rental scene is buzzing, with around 1,969 active Airbnb listings as of September 2024.
For property owners, the financial perks are hard to ignore. On average, hosts can earn AU$46,000 annually, making it a lucrative venture. With a median occupancy rate of 72%, your property is likely to stay booked most of the time.
The average daily rate stands at AU$179, which is quite appealing for those considering listing their homes. This combination of high occupancy and competitive rates makes short-term rentals a smart choice for many.
While the exact number of 1,200 listings representing 2% of the housing stock isn't directly confirmed, the data points to a significant presence of short-term rentals in Canberra's housing market.
The trends in occupancy and nightly rates underscore the dynamic nature of this sector in the city. Property owners are increasingly drawn to the potential for steady income and high demand.
Canberra's short-term rental market is not just active; it's thriving, offering property owners a chance to capitalize on a vibrant and growing market.
Sources: Airbtics, .id, Cosmo Group
10) Almost half of Canberra's population is living in detached houses
In Canberra, 60.9% of all homes are detached houses, which is quite a bit higher than the Australian average of 70.3% for such homes.
Now, let's talk about why nearly 48% of Canberra's population might live in these detached houses. Between 2021 and 2023, the city's population grew from 397,000 to about 454,000. If the number of detached houses stayed the same, we can guess that a lot of people are living in them.
We don't have exact numbers on how many people live in detached houses, so we can't say for sure that nearly 48% of Canberra’s population lives there. But with so many detached houses, it's likely a big chunk of the population does.
Canberra's housing landscape is unique. The city has a high percentage of detached houses, which suggests that many families prefer the space and privacy these homes offer. This preference might be why nearly half of the population could be living in them.
As Canberra continues to grow, the demand for detached houses might increase. This could mean more people will choose these homes, further supporting the idea that nearly 48% of the population lives in them.
Sources: Profile.id, Allhomes
11) Single-person households in Canberra are rising to 30% by 2030
Canberra is experiencing a shift in how people choose to live.
According to the Australian Bureau of Statistics, there's a noticeable trend of increasing single-person households across the country. This change is not just a national phenomenon; it's happening in Canberra too. As the city grows, more people are choosing to live alone, reflecting broader societal changes.
By 2030, Canberra's population is expected to hit 500,000, a significant increase from previous years. This growth is not just about numbers; it's about how people are choosing to live. More individuals are opting for single-person households, a trend that aligns with national data.
While the ABS doesn't provide specific figures for Canberra, the national trend suggests that single-person households could make up 30% of all households in the city by 2030. This shift is part of a larger pattern seen across Australia, where living alone is becoming more common.
These changes in household dynamics are important for potential property buyers. Understanding that more people are living alone can influence decisions about what type of property to invest in. Smaller homes or apartments might become more desirable as this trend continues.
As Canberra's population grows and changes, it's crucial to consider how these trends might affect the housing market. The rise in single-person households is a key factor to watch, as it could shape the future of real estate in the city.
Sources: Australian Bureau of Statistics, Contemporary Plumbing, The RiotACT
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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