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 is Australia's capital city, and its real estate market in 2026 has distinct patterns that matter if you're thinking of buying property there.
In this article, we break down everything you need to know about Canberra's housing prices in 2026, and we constantly update this blog post with fresh data.
Whether you want a house in Belconnen, an apartment in Braddon, or a townhouse in Molonglo Valley, we will guide you through how the market really works.
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.
How's the real estate market going in Canberra in 2026?
What's the average days-on-market in Canberra in 2026?
As of early 2026, homes in Canberra typically take around 50 days to sell, with houses averaging closer to 55 days and apartments or townhouses moving a bit faster at around 45 days.
Most listings in Canberra sell within a range of 35 to 70 days, though premium properties in sought-after areas like inner Braddon or Kingston can move faster, while overpriced listings in outer suburbs may sit longer.
Compared to 2024 and early 2025, selling times in Canberra have remained relatively stable, hovering in the low-to-mid 50s, which suggests a balanced market rather than a hot sellers' frenzy or a buyers' slump.
Are properties selling above or below asking in Canberra in 2026?
As of early 2026, most residential properties in Canberra sell at roughly 3% below the asking price on average, meaning buyers generally have some room to negotiate.
We estimate that around 70% of Canberra properties sell at or below asking, while perhaps 20 to 30% achieve asking price or slightly above, though these figures carry some uncertainty because not all sale prices are publicly disclosed.
The properties most likely to spark bidding wars in Canberra are well-located family homes near top school catchments in suburbs like Hughes, Curtin, or Aranda, as well as lifestyle apartments in high-demand inner nodes like Braddon, Kingston Foreshore, and Dickson.
By the way, you will find much more detailed data in our property pack covering the real estate market in Canberra.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Canberra?
What property types dominate in Canberra right now?
In Canberra's residential market, you will find roughly 55% detached houses, 30% apartments and flats, and 15% townhouses or semi-detached dwellings, though this mix varies significantly by district.
Detached houses remain the single largest segment in Canberra, dominating established family suburbs across Belconnen, Woden Valley, and Tuggeranong.
Canberra's unique "polycentric" urban design, with multiple town centres instead of one central business district, encouraged suburban house development around each hub while concentrating apartment construction near transit corridors and town centre nodes like Braddon, Gungahlin, and Belconnen Town Centre.
If you want to know more, you should read our dedicated analyses:
- 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?
Are new builds widely available in Canberra right now?
New-build properties represent roughly 15 to 20% of all residential listings currently available in Canberra, which is higher than many Australian cities thanks to active greenfield development in growth corridors.
As of early 2026, the highest concentration of new-build developments in Canberra is found in Molonglo Valley suburbs like Denman Prospect, Whitlam, Wright, and Coombs, as well as in infill apartment projects around Gungahlin Town Centre, Belconnen Town Centre, and select inner-city locations like Braddon and Kingston.
Get fresh and reliable information about the market in Canberra
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which neighborhoods are improving fastest in Canberra in 2026?
Which areas in Canberra are gentrifying in 2026?
As of early 2026, the Canberra neighborhoods showing the clearest gentrification signals are Braddon, Dickson, Kingston (especially Kingston Foreshore), and Campbell, all of which have seen sustained lifestyle-driven investment and demographic shifts toward higher-income professionals.
In Braddon, you will notice converted warehouses now housing specialty coffee roasters and design studios, while Dickson has seen older strip shops replaced by upscale dining and apartment complexes, and Kingston Foreshore continues adding waterfront restaurants and boutique retail that attracts young professionals and empty nesters.
Price appreciation in these gentrifying Canberra neighborhoods has typically ranged from 15 to 25% over the past three years, outpacing the citywide average, though growth rates have moderated in 2025 and early 2026 as affordability constraints bite.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Canberra.
Where are infrastructure projects boosting demand in Canberra in 2026?
As of early 2026, the areas seeing the strongest infrastructure-driven demand boost in Canberra are the suburbs along the Light Rail to Woden corridor, particularly Woden Town Centre itself and nearby suburbs like Phillip, Lyons, and parts of the Inner South near Barton.
The main infrastructure projects driving Canberra property demand include Stage 2B of the Light Rail to Woden, the expanded Canberra Hospital campus in Garran, and continued investment in Molonglo Valley's town centre and road network.
The Light Rail to Woden is expected to complete construction progressively through the late 2020s, with early sections operational before 2030, while the Canberra Hospital expansion is already delivering benefits to surrounding suburbs.
In Canberra, infrastructure announcements typically add 5 to 10% to nearby property prices within the first year, with a further 10 to 15% premium building over time as construction progresses and the project becomes operational.
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.
What do locals and insiders say the market feels like in Canberra?
Do people think homes are overpriced in Canberra in 2026?
As of early 2026, the general sentiment among Canberra locals and market insiders is that homes feel expensive relative to what you get, especially compared to larger cities like Brisbane or Adelaide, though many accept this as the trade-off for stability and quality of life.
When arguing that Canberra homes are overpriced, locals typically point to the fact that median house prices exceed $900,000 despite the city being relatively small, that you often get less land and older housing stock than in comparable price brackets elsewhere, and that properties can sit on market for 50+ days without selling.
Those who believe Canberra prices are fair counter that the city offers Australia's highest median household incomes, exceptional job security through public sector employment, top-ranked schools, and low crime rates that justify a premium.
Canberra's price-to-income ratio sits around 6 to 7 times median household income, which is actually more favorable than Sydney (around 10 to 12 times) or Melbourne (around 8 to 9 times), though it remains elevated compared to the national average of roughly 7 times.
What are common buyer mistakes people regret in Canberra right now?
The most frequently cited buyer mistake in Canberra is underestimating how much micro-location matters, because being 5 to 10 minutes closer to a top school catchment, a town centre, or a future light rail stop can make a significant difference in resale value and livability that many first-time buyers overlook.
The second most common regret is failing to properly investigate apartment body corporate quality and building defects, especially in newer Braddon, Kingston, Belconnen, and Gungahlin complexes where cladding issues, water ingress problems, or high strata fees can erode value and create ongoing headaches.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Canberra.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Canberra.
Get the full checklist for your due diligence in Canberra
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Canberra in 2026?
Do foreigners face extra challenges in Canberra right now?
Foreign buyers face a moderately high difficulty level when purchasing property in Canberra compared to local buyers, primarily because of Australia's strict foreign investment rules that channel non-residents toward new dwellings and require government approval before purchase.
Under Australia's Foreign Investment Review Board (FIRB) rules, foreign buyers generally cannot purchase established homes in Canberra and must instead buy new dwellings that add to housing supply, with approval required before signing unconditional contracts and application fees that can run into thousands of dollars.
Beyond the legal requirements, foreigners buying in Canberra commonly struggle with navigating the ACT's unique leasehold land system (all land is technically leased from the government rather than owned freehold), understanding the foreign ownership land tax surcharge that applies to investment properties, and coordinating settlement timing when FIRB approval delays occur.
We will tell you more in our blog article about foreigner property ownership in Canberra.
Do banks lend to foreigners in Canberra in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Canberra, but options are more limited and terms are stricter than for Australian residents, with only a handful of major banks and specialist lenders actively serving this market.
Foreign buyers in Canberra can typically expect loan-to-value ratios capped at 60 to 70% (meaning you need a 30 to 40% deposit), with interest rates around 0.5 to 1% higher than standard resident rates, though exact terms vary significantly by lender and your individual circumstances.
Banks lending to foreigners in Canberra will typically demand verified income documentation (often requiring translation and certification), evidence of savings history, clear proof of employment continuity, and sometimes additional buffers or guarantees to account for currency risk and the complexity of enforcing against overseas borrowers.
You can also read our latest update about mortgage and interest rates in Australia.
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 risky is buying in Canberra compared to other nearby markets?
Is Canberra more volatile than nearby places in 2026?
As of early 2026, Canberra shows lower price volatility than Sydney and similar or slightly lower volatility than Melbourne, while being notably more stable than resource-dependent regional markets in NSW or Queensland.
Over the past decade, Canberra property prices have experienced more modest swings than Sydney's dramatic peaks and troughs, with the ACT avoiding the sharp 15 to 20% corrections that hit Sydney in 2018-2019 and instead moving in steadier 5 to 10% annual ranges.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Canberra.
Is Canberra resilient during downturns historically?
Canberra has historically demonstrated above-average resilience during economic downturns, with property values typically declining less and recovering faster than most other Australian capitals.
During the 2018-2019 national housing correction, Canberra prices dipped only around 3 to 5% compared to Sydney's 15%+ fall, and recovery in Canberra took roughly 12 to 18 months versus two to three years in Sydney.
The property types that have held value best during Canberra downturns are detached houses in established family suburbs near good schools and government employment centres, particularly in areas like Hughes, Curtin, Garran, and Deakin, while oversupplied apartment pockets in Belconnen Town Centre and parts of Gungahlin have shown more vulnerability.
Get to know the market before you buy a property in Canberra
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How strong is rental demand behind the scenes in Canberra in 2026?
Is long-term rental demand growing in Canberra in 2026?
As of early 2026, long-term rental demand in Canberra continues to grow moderately, supported by persistently low vacancy rates that have hovered around 1 to 2% for several years.
The main tenant demographics driving Canberra's long-term rental demand are young public servants and professionals (especially those on initial government contracts), university students and researchers at ANU and UC, and families relocating for career opportunities who rent before buying.
The neighborhoods with the strongest long-term rental demand in Canberra right now include inner areas close to government offices like Barton, Civic, and Turner, town centre locations like Belconnen and Gungahlin that offer apartment living with amenities, and suburbs near the ANU campus like Acton, O'Connor, and Lyneham.
You might want to check our latest analysis about rental yields in Canberra.
Is short-term rental demand growing in Canberra in 2026?
The ACT introduced a Short-Term Rental Accommodation Levy in 2025, which now applies to properties rented for short stays and adds regulatory compliance costs that reduce net yields for Airbnb-style operators in Canberra.
As of early 2026, short-term rental demand in Canberra remains steady rather than growing, as the new levy and strata bylaw restrictions in many apartment buildings have tempered investor enthusiasm.
Average occupancy rates for short-term rentals in Canberra currently sit around 55 to 65%, varying significantly by location and property type, with inner-city apartments near Civic performing best during parliamentary sitting weeks and major events.
The guest demographics driving short-term rental demand in Canberra are predominantly business travelers and government contractors visiting for meetings, families attending events at Parliament House or national institutions, and domestic tourists exploring the city's museums and galleries.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Canberra.
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 realistic short-term and long-term projections for Canberra in 2026?
What's the 12-month outlook for demand in Canberra in 2026?
As of early 2026, the 12-month demand outlook for residential property in Canberra is steady to slightly positive, with moderate buyer activity expected as interest rate clarity improves and population growth continues.
The key factors most likely to influence Canberra property demand over the next 12 months are Reserve Bank of Australia interest rate decisions, federal government employment and budget policies (which directly affect the city's largest employer base), and whether net interstate and overseas migration to the ACT remains positive.
Based on current market indicators, we forecast Canberra property prices to increase by around 2 to 5% over the next 12 months, representing modest growth rather than a boom or decline.
By the way, we also have an update regarding price forecasts in Australia.
What's the 3-5 year outlook for housing in Canberra in 2026?
As of early 2026, the 3-5 year outlook for Canberra housing is moderately positive, with prices expected to grow in line with or slightly above inflation as population increases and infrastructure investment continues.
The major development projects expected to shape Canberra over the next 3-5 years include the completion of Light Rail Stage 2B to Woden, continued Molonglo Valley buildout including a new town centre, and urban renewal in aging inner suburbs that will add housing supply near existing services.
The single biggest uncertainty that could alter Canberra's 3-5 year outlook is a significant change in federal government staffing policy, such as large-scale cuts to the public service or a shift toward decentralizing agencies away from Canberra, which would directly reduce demand for housing in the capital.
Are demographics or other trends pushing prices up in Canberra in 2026?
As of early 2026, demographic trends are providing moderate upward pressure on Canberra housing prices, primarily through continued population growth and strong household formation rates among the city's professional workforce.
The specific demographic shifts most affecting Canberra prices include net positive interstate migration (particularly from Sydney as workers seek lower costs and better work-life balance), continued international migration of skilled professionals and students, and the city's relatively young population forming new households as they enter peak home-buying years.
Beyond demographics, Canberra is also seeing price pressure from the growth of hybrid work arrangements that allow some federal employees to live further from the city centre while still commuting periodically, which is spreading demand into formerly quieter suburbs and supporting prices in previously overlooked areas.
These demographic and trend-driven price pressures are expected to continue for at least the next 5 to 10 years in Canberra, assuming the federal government remains based in the city and continues to be a major employer, though the intensity of pressure may vary with economic cycles.
What scenario would cause a downturn in Canberra in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Canberra would be a combination of sustained high interest rates squeezing borrowing capacity alongside a federal government decision to significantly reduce public service employment or relocate agencies interstate.
Early warning signs that such a downturn is beginning in Canberra would include vacancy rates rising above 3% (signaling weakening demand), days on market extending beyond 70-80 days across most suburbs, asking prices beginning to fall rather than just plateau, and reduced auction clearance rates dropping below 50%.
Based on historical patterns, a potential Canberra downturn would likely be milder than in more volatile markets, with peak-to-trough declines of perhaps 5 to 10% over 12-18 months rather than the 15-20% corrections sometimes seen in Sydney, because Canberra's employment base provides a more stable floor for demand.
Make a profitable investment in Canberra
Better information leads to better decisions. Save time and money. Download our guide.
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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Australian Bureau of Statistics (ABS) Census | It's Australia's official statistics agency and the Census is the baseline for understanding Canberra's housing stock and population. | We used it to ground what Canberra's dwelling types and household profiles actually look like. We then cross-checked local market narratives against what residents and dwellings really are. |
| ABS Residential Property Price Indexes | It's an official, transparent methodology for tracking price movements across Australian capital cities. | We used it to benchmark Canberra's price volatility and growth against other capitals over time. We then paired it with private indexes to reduce single-source bias. |
| Reserve Bank of Australia (RBA) | It's the central bank's core publication for interest rates, inflation, and housing credit conditions that directly affect buyers. | We used it to frame the macro drivers like rates and income growth that shape affordability. We then translated those into practical implications for Canberra buyers in early 2026. |
| FIRB Guidance Note 1 | It's the Australian Government's official policy guidance for foreign buyers of residential property. | We used it to clarify what foreigners can and cannot buy, especially the rules around new versus established dwellings. We then translated that into what's realistic for buyers in Canberra. |
| ACT Treasury Population Projections | It's the ACT Government's official forward view of population growth by district and suburb. | We used it to identify where demand pressure is most likely to persist in Canberra. We then connected it to which areas are improving fastest. |
| ACT Revenue Office (Foreign Ownership Surcharge) | It's the ACT Government's official rule page for foreign owner land tax surcharges. | We used it to explain the ongoing holding cost risk that surprises many foreign buyers. We then suggested how to test whether it applies to your intended use. |
| ACT Government Light Rail to Woden | It's the official project hub for Canberra's biggest near-term transit expansion. | We used it to identify corridors where accessibility improvements can lift property demand. We then gave suburb examples that sit near the alignment and interchanges. |
| Cotality (CoreLogic) Housing Chart Pack | It's the most widely referenced professional housing dataset in Australia with clearly defined metrics. | We used it to quantify market momentum using days on market and vendor discounting data. We then extrapolated a 2026 estimate by combining with early-2026 asking price indicators. |
| SQM Research (Asking Prices) | It's a long-running, transparent methodology series widely cited by major media and housing analysts. | We used it as a near-real-time read on price intent in January 2026. We then compared it to sold price proxies to understand negotiation dynamics. |
| SQM Research (Vacancy Rates) | It's a widely used vacancy rate indicator with clear historical comparability for assessing rental market tightness. | We used it to assess underlying rental demand that supports property prices. We then split implications for long-term rentals versus short-stay accommodation. |
| ACT Short-Term Rental Accommodation Levy Act 2025 | It's the actual primary law governing the short-term rental levy, not just commentary about it. | We used it to confirm the rules that affect short-term rental returns in Canberra. We then translated it into what to check before buying if you plan to operate an Airbnb. |
| APRA APG 223 (Mortgage Lending Guidance) | It's the banking regulator's guidance on prudent mortgage underwriting standards in Australia. | We used it to explain why banks can be strict on serviceability and documentation. We then mapped that to what foreign buyers typically experience in practice. |
Related blog posts