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
If you're buying an investment property in Canberra, understanding realistic rental returns relative to purchase price is essential.
We've compiled the latest data from Domain, Cotality (CoreLogic), PropTrack, and official ACT Government sources to give you a clear picture of Canberra rental yields in 2026.
We constantly update this blog post, so the numbers here are as current as possible.
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.
Insights
- Canberra's citywide gross rental yield averages around 4.3% in early 2026, with unit investors achieving 4.7% to 5.6% while house investors land in the mid-3% range.
- The gap between gross and net yield in Canberra is roughly 1.2 percentage points, driven by general rates, strata levies, and property management fees.
- Vacancy sits around 1.5%, tight by national standards, meaning landlords rarely face extended empty periods.
- High-yield pockets like Belconnen, Bruce, and Gungahlin can push gross yields above 5%, while prestige suburbs like Yarralumla and Forrest compress yields below 3.5%.
- Strata levies in Canberra units can reduce net yields by 0.5 to 1 percentage point compared to freestanding houses.
- Property management typically costs 6% to 8.5% of rent, plus a leasing fee of one to two weeks' rent for new tenants.
- Two-bedroom units near town centres are the sweet spot for balancing tenant demand, entry prices, and rental returns.
- The federal government and defence ecosystem creates steady relocating tenants, keeping Canberra's rental demand more stable than many Australian cities.
What are the rental yields in Canberra as of 2026?
What's the average gross rental yield in Canberra as of 2026?
As of early 2026, the average gross rental yield across all residential property types in Canberra is approximately 4.3%, meaning investors earn around A$43 in annual rent for every A$1,000 of property value.
Gross rental yields realistically range from about 3.4% for detached houses up to 5.6% for well-located units, so the spread depends heavily on what and where you buy.
Compared to other Australian capitals, Canberra's gross yields are moderate: higher than Sydney's compressed returns but lower than Brisbane or Adelaide, reflecting strong rents alongside elevated purchase prices.
The biggest factor shaping gross yields in Canberra is the price gap between houses and units, as houses are expensive relative to rents while units offer better income-to-price ratios near town centres.
What's the average net rental yield in Canberra as of 2026?
As of early 2026, the average net rental yield in Canberra is approximately 3.1% after accounting for typical landlord expenses.
The gap between gross and net yields is roughly 1.2 percentage points, a meaningful reduction investors must factor into cashflow calculations.
In Canberra, strata levies for units and general rates most significantly erode gross yields, with strata often covering building insurance and common-area maintenance.
Net yields range from around 2.2% for premium houses in prestige suburbs to about 4.0% for efficiently managed units in high-demand town centres.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market 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 yield is considered "good" in Canberra in 2026?
In Canberra, a gross rental yield around 4.8% or higher is considered "good" by local investors, meaning you're outperforming the citywide average with a well-located unit or townhouse.
The threshold separating average from high-performing properties is roughly 4.5% gross yield, as anything above suggests meaningfully stronger rent relative to purchase price.
How much do yields vary by neighborhood in Canberra as of 2026?
As of early 2026, gross rental yields between Canberra's highest and lowest-yield neighborhoods spread roughly 2.5 percentage points, from about 3.0% in prestige areas to 5.5% in unit-heavy town centres.
Neighborhoods delivering highest yields have affordable entry prices and strong renter demand: Belconnen (especially the town centre), Bruce near the hospital and university, and Gungahlin with newer stock attracting steady tenants.
Lowest yields appear in prestige, owner-occupier suburbs like Yarralumla, Forrest, and Red Hill, where buyers pay premiums for land, schools, and Inner South status that rents don't match.
Yields vary because purchase prices in premium suburbs are driven by lifestyle factors and capital growth expectations, while rents follow tenant demand near employment and transport hubs.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Canberra.
How much do yields vary by property type in Canberra as of 2026?
As of early 2026, gross rental yields in Canberra range from about 3.4% for detached houses to around 5.6% for well-positioned units, with townhouses at roughly 4.0% to 4.8%.
Units and apartments deliver the highest average gross yield, particularly near town centres like Belconnen, Woden, and Gungahlin, because lower purchase prices create better income ratios.
Detached houses deliver the lowest gross yield, typically mid-3%, because high capital values mean rent represents a smaller percentage of purchase price.
Yields differ because house prices have outpaced rent growth, while units remain affordable to buy yet attract solid weekly rents from tenants seeking convenient living.
By the way, you might want to read the following:
What's the typical vacancy rate in Canberra as of 2026?
As of early 2026, Canberra's typical residential vacancy rate is approximately 1.5%, signaling a landlord-friendly market where properties find tenants quickly.
Across neighborhoods, vacancy ranges from below 1% in high-demand inner suburbs to around 2% in outer areas, though overall the market remains tight.
The main factor keeping vacancy low is steady demand from federal government employees, defence personnel, and university students continuously cycling through due to transfers and study.
Canberra's vacancy rate is notably tighter than most Australian capitals, giving landlords confidence in consistent occupancy.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Canberra.
What's the rent-to-price ratio in Canberra as of 2026?
As of early 2026, Canberra's average rent-to-price ratio is approximately 0.36% per month (around 4.3% annually), essentially gross yield expressed monthly.
For buy-to-let investors, a ratio above 0.40% monthly (roughly 4.8% annually) is considered favourable, indicating stronger income relative to purchase cost.
Canberra's ratio sits mid-pack among Australian capitals: better than Sydney's compressed ratios but less generous than Adelaide or Hobart where entry prices are lower.
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 neighborhoods and micro-areas in Canberra give the best yields as of 2026?
Where are the highest-yield areas in Canberra as of 2026?
As of early 2026, the top three highest-yield neighborhoods are Belconnen (particularly the town centre), Bruce (near the hospital and University of Canberra), and Gungahlin, offering strong renter demand with affordable entry prices.
In Belconnen, Bruce, and Gungahlin, investors can expect gross yields of approximately 4.8% to 5.6%, depending on property type and specific location.
These high-yield areas share a concentration of unit and townhouse stock near employment nodes, transport, and educational institutions, creating consistent demand without inner-suburb premiums.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Canberra.
Where are the lowest-yield areas in Canberra as of 2026?
As of early 2026, the three lowest-yield neighborhoods are Yarralumla, Forrest, and Red Hill, prestigious Inner South suburbs where buyers pay premiums that rents cannot justify from a yield perspective.
In these areas, gross yields typically range from 2.8% to 3.5%, reflecting high purchase prices driven by lifestyle appeal rather than rental fundamentals.
Yields are compressed because these owner-occupier-dominated markets see buyers competing for land, established homes, and school access, pushing prices beyond rental support.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Canberra.
Which areas have the lowest vacancy in Canberra as of 2026?
As of early 2026, the three neighborhoods with lowest vacancy are Braddon and Turner (Inner North), Kingston and Griffith (Inner South), and Bruce near the university and hospital.
In these areas, vacancy sits well below 1%, meaning landlords rarely experience gaps between tenants.
Proximity to major employment hubs keeps vacancy low, with young professionals, public servants, and healthcare workers seeking convenient, walkable locations.
The trade-off: entry prices tend to be higher, compressing yields, so you're paying a premium for occupancy stability over maximising return percentage.
Which areas have the most renter demand in Canberra right now?
The top three neighborhoods with strongest renter demand are Civic and Braddon in the city centre, Belconnen town centre, and Gungahlin, where jobs, services, and amenities create constant tenant interest.
Demand is driven by young professionals in federal government and defence, early-career public servants on contracts, and university students seeking convenient locations.
In high-demand neighborhoods like Braddon, Belconnen, and Gungahlin, listings typically fill within one to two weeks, with landlords often choosing from multiple applicants.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Canberra.
Which upcoming projects could boost rents and rental yields in Canberra as of 2026?
As of early 2026, the three major infrastructure projects expected to boost rents are the Light Rail extension to Woden, the Northside Hospital in Bruce, and new suburb rollouts in Molonglo Valley.
Neighborhoods likely to benefit include Civic, Inner North, and light rail corridor suburbs for transport; Bruce and surrounds for the hospital; and Molonglo suburbs like Denman Prospect for residential growth.
Once completed, investors might expect rent increases of 3% to 8% in affected areas, depending on how each project improves accessibility, employment, or amenities.
You'll find our latest property market analysis about Canberra here.
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What property type should I buy for renting in Canberra as of 2026?
Between studios and larger units in Canberra, which performs best in 2026?
As of early 2026, well-located two-bedroom units generally outperform studios when balancing yield and occupancy, attracting a broader tenant pool with competitive returns.
Studios achieve gross yields of around 5.0% to 5.6% (roughly A$15,000 to A$18,000 annually / US$9,500 to US$11,500 / EUR 8,700 to EUR 10,500), while two-bedroom units yield 4.5% to 5.2% with higher absolute rents.
Two-bedroom units edge out studios because couples, sharers, and remote workers all compete for them, whereas studios appeal mainly to singles and students.
However, studios can be better investments near ANU or in Braddon, where compact living is preferred and turnover is less concerning.
What property types are in most demand in Canberra as of 2026?
As of early 2026, the most in-demand property type is two-bedroom units near town centres, hitting the sweet spot between tenant affordability and convenience for professionals and couples.
Top three by demand: two-bedroom units first, three-bedroom townhouses second (families wanting space without house prices), and detached houses third (always demanded but affordability-constrained).
This demand pattern is driven by young government-contract professionals, couples seeking manageable costs, and preference for low-maintenance properties near work.
Large four-plus bedroom houses in outer suburbs underperform and will likely remain weak, as the tenant pool willing to pay premium rents for that space is small.
What unit size has the best yield per m² in Canberra as of 2026?
As of early 2026, units of 45 to 65 square metres deliver the best gross yield per m² in Canberra, typically compact one-bedroom and small two-bedroom apartments in town centres.
For this optimal size, typical yield per m² is roughly A$550 to A$650 annually (US$350 to US$415 / EUR 320 to EUR 380) in well-located buildings.
Smaller studios and larger three-bedroom units yield less per m² because studios carry disproportionate strata levies, while bigger units need higher purchase prices that rents don't compensate for.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Canberra.
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 costs cut my net yield in Canberra as of 2026?
What are typical property taxes and recurring local fees in Canberra as of 2026?
As of early 2026, annual property tax (general rates) for a typical Canberra rental apartment is approximately A$2,000 to A$3,500 (US$1,300 to US$2,200 / EUR 1,150 to EUR 2,000), depending on land value and location.
Landlords must also budget for land tax on investment properties, adding A$1,500 to A$4,000 annually (US$950 to US$2,550 / EUR 870 to EUR 2,300) depending on value and exemptions.
Combined, these taxes typically represent 8% to 12% of gross rental income, meaningfully reducing net yield.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Canberra.
What insurance, maintenance, and annual repair costs should landlords budget in Canberra right now?
Annual landlord insurance in Canberra costs approximately A$600 to A$1,200 (US$380 to US$765 / EUR 350 to EUR 700), with units lower as building insurance is often in strata.
For maintenance, budget 0.5% to 1.0% of property value annually, around A$3,000 to A$6,000 (US$1,900 to US$3,800 / EUR 1,750 to EUR 3,500) for typical properties.
Hot water system replacement catches Canberra landlords off guard most often, as cold winters strain systems and failures cost A$1,500 to A$3,000 urgently.
Total realistic budget for insurance, maintenance, and repairs: A$4,000 to A$7,500 annually (US$2,550 to US$4,800 / EUR 2,300 to EUR 4,350).
Which utilities do landlords typically pay, and what do they cost in Canberra right now?
In Canberra, landlords typically aren't responsible for metered utilities (electricity, gas, water) when separately metered, as ACT rules require tenants to pay their own consumption.
Monthly landlord-paid utilities are effectively A$0 for most properties, though budget A$50 to A$100 (US$32 to US$64 / EUR 29 to EUR 58) if shared services exist.
What does full-service property management cost, including leasing, in Canberra as of 2026?
As of early 2026, property management fees run 6% to 8.5% of collected rent, meaning A$155 to A$220 monthly (US$100 to US$140 / EUR 90 to EUR 130) for a property earning A$600 weekly.
Leasing fees add one to two weeks' rent per new tenant, approximately A$600 to A$1,400 (US$380 to US$890 / EUR 350 to EUR 815) per changeover.
What's a realistic vacancy buffer in Canberra as of 2026?
As of early 2026, set aside 4% to 6% of annual rental income as vacancy buffer, even with headline vacancy at 1.5%, to cover changeover time and minor repairs.
Practically, Canberra landlords experience two to three vacant weeks yearly, covering the gap between tenancies plus touch-up work.
Buying real estate in Canberra can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses in our property pack about Canberra, we rely on the strongest methodology we can and don't throw out numbers at random.
We aim for full transparency, so below we've listed our sources and explained how we used them.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Domain House Price Report (Sep 2025) | Major Australian property publisher with transparent median methodology. | We anchored Canberra house and unit prices by type. We carried these forward to early 2026 using index-style indicators. |
| Domain Rental Report (Dec 2025) | Widely cited rental dataset with methodology covering rents and vacancy by capital. | We anchored median weekly rents and vacancy readings. December 2025 serves as our January 2026 snapshot. |
| Cotality (CoreLogic) Home Value Index (Nov 2025) | Australia's largest property analytics provider with rigorous hedonic methodology. | We anchored median dwelling values and value direction. We blended with Domain medians for robust estimates. |
| PropTrack Home Price Index (Dec 2025) | REA Group's research arm with transparent index and timing. | We validated timing and momentum into early 2026. It confirmed market direction entering the new year. |
| ABS Total Value of Dwellings | Australia's national statistics agency, gold-standard primary source. | We used it as methodology cross-check for dwelling price concepts. It ensured our definitions align with standards. |
| SQM Research Vacancy Rates | Long-running Australian housing firm known for vacancy and listing indicators. | We grounded the vacancy story and sized realistic buffers for net-yield calculations. |
| ACT Government Starting a Tenancy | Official ACT guidance for renting rules and responsibilities. | We ensured landlord/tenant responsibilities are described correctly. It kept cost assumptions consistent with ACT rules. |
| Legal Aid ACT Tenancy Rights | Trusted public institution providing practical legal guidance. | We confirmed who pays metered utilities and conditions. It helped avoid folklore advice. |
| ACT Government Owning a Unit | Official ACT guidance on strata ownership and owners corporation. | We explained owners corporation levies as yield considerations. This informed net-yield deductions for strata. |
| ATO Rental Expenses Guide | Primary tax authority with definitive landlord rules. | We described typical landlord costs and expense categories. It structured our net-yield costs cleanly. |
| ATO Common Property Expenses | ATO explains strata costs in landlord context with tax treatment. | We framed strata costs as part of owner's stack. It showed why unit net yields differ from gross. |
| DHA Property Management Fee Comparison | Government entity with Oxford Economics providing rigorous comparison. | We grounded management fees reliably. We converted typical ranges into net-yield deductions. |
| Cotality 2025/2026 Market Commentary | First-party commentary from top national housing data provider. | We used it for narrative context on early-2026 conditions. It provided supporting evidence for market framing. |
| ACT Government Light Rail to Woden | Official project page with construction updates and timelines. | We identified infrastructure projects boosting rents. It mapped suburbs benefiting from improved accessibility. |
| ACT Government Northside Hospital Project | Official page for major health infrastructure investment. | We identified employment projects supporting demand. It informed rent growth assessments for surrounding areas. |
| ACT Government New Molonglo Suburbs | Official announcement about new suburb development. | We tracked new supply in Molonglo Valley. It informed how greenfield development affects rental balance. |
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