Yes, the analysis of Canberra's property market is included in our pack
The question of 'the best neighborhood to buy a property in Canberra' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At BambooRoutes, when we write a blog post or when we update our our property pack for Australia, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Canberra into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
Make a profitable investment in Canberra
Better information leads to better decisions. Save time and money. Download our guide.
How is the real estate market in Canberra?
The real estate market in Canberra, Australia's capital city, is quite intriguing and dynamic.
One of the main strengths of Canberra is its unique blend of urban and natural environments. The city is renowned for its extensive green spaces, such as the Australian National Botanic Gardens and Lake Burley Griffin, which are not just beautiful but also contribute to the city's clean air and overall quality of life.
These features are rare in other cities, making Canberra particularly attractive.
People are drawn to buy in Canberra for several reasons.
Firstly, it's the seat of the federal government, which means a stable job market primarily focused on public service and associated industries. This stability is a big draw for professionals and families seeking a secure and prosperous community.
Additionally, Canberra boasts high-quality educational institutions, including the Australian National University, making it appealing to academics and students.
Interestingly, the real estate market in Canberra has been attracting considerable interest from foreign investors. This is partly due to the city's reputation for safety, cleanliness, and a high standard of living, coupled with its potential for property value growth.
International investors recognize Canberra as a place where they can get good value for their investment.
Regarding the market's dynamics, a notable data point is the consistent rise in property values over recent years. This trend is fueled by the city's continuous development, growing population, and limited land release, making real estate in Canberra a sought-after commodity.
One unique and positive aspect of properties in Canberra is their design, particularly the integration of energy-efficient features. Many homes are designed with sustainability in mind, incorporating solar panels and energy-efficient appliances, which is not only good for the environment but also reduces living costs in the long run.
Looking into the future, there are several reasons why properties in Canberra are expected to gain value.
The city's ongoing development plans, including infrastructure improvements and new cultural attractions, are set to enhance its appeal.
Moreover, the continual influx of government and private sector professionals seeking high-quality living standards will keep demand strong.
Top neighborhoods in Canberra to consider for living
Areas in Canberra that are budget-friendly
If you're looking to buy property in Canberra on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Average Price per sqm | Property Types | Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Belconnen | Lower than central | Apartments, Townhouses | Students, Young Professionals, Families | Growing amenities, University proximity | Distance from city, Less vibrant nightlife |
| Tuggeranong | Appealing for larger properties | Detached Houses, Townhouses | Families, Older Adults | Natural surroundings, Community feel | Limited nightlife, Distance from central Canberra |
| Gungahlin | Value for money | Modern Apartments, Houses | Younger Demographics, Families | Modern amenities, Growth potential | Ongoing construction, Developing community |
Belconnen
Belconnen is known for its affordability in Canberra, particularly attractive for first-time homebuyers and investors.
The reason for its relatively low prices is its distance from the city center and the perception of being a 'less trendy' area. However, with ongoing development projects and improved infrastructure, property values in Belconnen are expected to rise. The area predominantly features apartments and townhouses, ideal for small families or singles.
The average price per square meter in Belconnen is generally lower than in more central locations, offering a cost-effective option. The population is diverse, including students, young professionals, and families.
Strengths of Belconnen include its growing amenities and proximity to the University of Canberra, while weaknesses lie in its distance from the city and less vibrant nightlife.
Tuggeranong
Tuggeranong offers a peaceful and budget-friendly living environment, appealing to families and retirees.
It's cheaper due to its location furthest south of Canberra's center, which has historically led to lower demand. However, with increasing connectivity and infrastructure improvements, property values are expected to gradually increase.
The area predominantly consists of detached houses and some townhouses in Tuggeranong, with an average price per square meter that's quite appealing for larger properties. The demographic is primarily families and older adults, attracted by the area's tranquility and community feel.
Tuggeranong's strengths are its natural surroundings and sense of community, but its weaknesses include limited nightlife and distance from central Canberra.
Gungahlin
Gungahlin is another affordable option, particularly appealing to young families and professionals.
Its lower property prices can be attributed to ongoing development and higher availability of new properties. The area is poised for growth in property values due to continuous development and enhanced infrastructure.
Housing options range from modern apartments to spacious houses in Gungahlin, with an average price per square meter that provides value for money. The population is diverse but leans towards younger demographics and families.
Gungahlin's strengths are its modern amenities and potential for growth, while its weaknesses include ongoing construction and a developing community atmosphere.
Don't lose money on your property in Canberra
100% of people who have lost money in Australia have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Canberra that are popular and upscale
When looking to buy property in Canberra, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price per Sqm | Resident Demographic | Strengths | Weaknesses |
|---|---|---|---|---|
| Griffith | High | Professionals, Families | Cafes, Parks | High Cost of Living |
| Kingston | Moderately High | Young Professionals, Retirees | Dining, Shopping | Traffic, Noise |
| Yarralumla | Very High | Diplomats, Long-standing Residents | Natural Beauty, Community | Limited Nightlife |
Griffith
Griffith is a top-tier neighborhood known for its exclusivity and prestige.
Properties in Griffith are expensive, with an average price per square meter hovering around high figures, reflecting the area's desirability. It's a place that's likely to remain in demand, thanks to its beautiful streets, proximity to key amenities, and an array of high-end homes, from classic mansions to modern apartments.
The residents in Griffith are predominantly well-to-do professionals and families who enjoy the area's tranquility and class.
Strengths include excellent local cafes, restaurants, and parks. However, the cost of living is high, and there's a sense of exclusivity that might not appeal to everyone.
Kingston
Kingston is another sought-after area, balancing urban living with a sense of community.
The property market in Kingston is vibrant, featuring a mix of old and new apartments, and the average price per square meter is slightly lower than in Griffith but still considerable.
Kingston's appeal is expected to persist, driven by its lively dining scene, shopping options, and access to the waterfront. The demographic is a mix of young professionals, small families, and retirees.
Strengths are the area's social life and amenities, but traffic and noise can be drawbacks, especially on weekends.
Yarralumla
Yarralumla is known for its large blocks and proximity to the lake, making it a highly desirable and expensive neighborhood.
The average price per square meter in Yarralumla reflects the area's status and the size and quality of the properties. The area is expected to remain popular, thanks to its serene environment, large homes, and accessibility to the city's central areas.
It's home to a mix of diplomats, professionals, and long-standing residents.
The strengths include its natural beauty and sense of community, but the high property prices and limited nightlife options could be seen as weaknesses.
Make sure you understand the real estate market in Canberra
Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Canberra that emerge as new hotspots
Let's explore these emerging neighborhoods in Canberra that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Current Price Trend | Resident Demographic | Strengths | Weaknesses |
|---|---|---|---|---|
| Watson | Rising | Young, Artistic | Culture, Community | Lacks High-end Amenities |
| Downer | Accessible, Rising | First-time Buyers, Young Families | New Amenities, Green Spaces | Still Developing |
| Narrabundah | Steady, Potential Growth | Diverse Residents | Character, Dining Scene | Variable Property Quality |
Watson
Watson, once a quieter suburb, is rapidly becoming a trendy spot for property buyers.
Initially more modest, recent developments have brought in new energy and style. It's becoming popular for its more affordable prices compared to central areas, with an eclectic mix of old and new housing.
The neighborhood has seen a surge in trendy cafes and shops, attracting a younger, artistic crowd. Prices in Watson are expected to rise as its popularity grows, but it still offers value for now.
Its strengths are its evolving culture and community vibe, but it may lack some of the high-end amenities of more established areas.
Downer
Downer is a neighborhood in transition.
Once overlooked, it's now gaining attention for its potential. It's seen a wave of renovations and new developments, making it attractive for first-time buyers and young families.
The prices in Downer are more accessible than in prime areas, yet with the ongoing developments, they're set to rise. The area's strengths lie in its community feel and the influx of new amenities and green spaces.
However, its transitional nature means it's still finding its identity, and some parts are under development.
Narrabundah
Narrabundah is a diverse suburb with a mix of old charm and new potential.
It's becoming popular for its relatively lower prices and the promise of growth. The area has a mix of post-war homes and new developments, attracting a blend of long-term residents and new, younger inhabitants.
The neighborhood is gaining popularity for its unique character and improving amenities, with prices expected to rise as it becomes more sought-after.
Strengths include its diversity and evolving dining scene, but it can be a bit of a mixed bag in terms of property and neighborhood quality.
Make a profitable investment in Canberra
Better information leads to better decisions. Save time and money. Download our guide.
Top neighborhoods in Canberra to invest in property
Areas in Canberra with a strong rental demand
If you're considering buying real estate in Canberra for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Tenant Demographics | Property Type | Average Rent per Week | Rental Yield | Tips and Weaknesses |
|---|---|---|---|---|---|
| Braddon | Young professionals, Government employees | Modern apartments, Renovated homes | $500 | 4-5% | Focus on Lonsdale Street, unique amenities; high property prices, noise issues |
| Kingston | Families, Older professionals | 3-4 bedroom houses, Spacious apartments | $600-$800 | 3-4% | Near Kingston Foreshore, modern amenities; high investment, competition from new developments |
| Belconnen | Students, Academics | Studio, 1-bedroom apartments | $300-$400 | 5-6% | Near Westfield mall, public transport; seasonal fluctuations, potential oversupply |
Braddon
In Braddon, the rental demand is primarily driven by young professionals and government employees due to its proximity to the Canberra CBD and government offices.
The area is popular for its vibrant lifestyle, cafes, and nightlife, attracting tenants who seek a dynamic urban living experience. Most are looking for modern apartments or renovated older homes. The average rental income for a two-bedroom apartment in Braddon is around $500 per week, leading to a rental yield of approximately 4-5%.
For higher rental income, focus on properties near Lonsdale Street or those with unique amenities like a good view or extra parking. The market in Braddon is competitive, so properties with unique features or in prime locations can command higher rents.
However, the downside is the higher property prices and potential noise issues due to the lively atmosphere.
Kingston
Kingston is favored by families and older professionals for its peaceful, leafy environment and proximity to quality schools and parks.
Rental demand in Kingston is strong for three to four-bedroom houses or spacious apartments. These properties in Kingston can fetch around $600-$800 per week, with a rental yield of about 3-4%.
To maximize rental income, look for properties near the Kingston Foreshore or those with spacious layouts and modern amenities. These properties are less likely to face vacancy issues due to the steady demand.
However, the initial investment can be high, and there may be competition from new developments in the area.
Belconnen
Belconnen attracts students and academics due to its proximity to the University of Canberra and Australian National University.
The rental market in Belconnen is dynamic, with a high demand for studio and one-bedroom apartments. These units in Belconnen can earn about $300-$400 per week, translating to a yield of around 5-6%.
Properties near the Westfield Belconnen mall or with good public transport links are particularly sought after. To increase rental income, focus on well-maintained properties or those with additional features like a study area.
The risks include seasonal rental fluctuations due to the academic year and potential oversupply from new apartment complexes.
Don't lose money on your property in Canberra
100% of people who have lost money in Australia have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Canberra where property prices might increase in the future
In these areas in in Canberra you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Tenant Demographics | Property Type | Average Price per Night | Tips and Weaknesses |
|---|---|---|---|---|
| Civic | Business travelers, Tourists | Modern apartments, Boutique hotels | $150-$200 | Near attractions, high-quality finishes; stiff competition, fluctuating demand |
| Gungahlin | Families, Groups | Spacious homes, Townhouses | $250-$300 | Well-connected areas, local attractions; potential oversupply from new developments |
| Yarralumla | Diplomats, High-ranking officials | Luxury properties | $400 | Near Lake Burley Griffin, unique features; high investment, limited customer base |
Civic
Civic, being the heart of Canberra, experiences strong short-term rental demand, especially from business travelers and tourists.
They typically look for modern, well-furnished apartments or boutique hotels. Essential amenities include Wi-Fi, a workspace, and proximity to public transport and restaurants.
The average price for one night in a one-bedroom apartment in Civic is around $150-$200. To capitalize on this market, invest in properties near popular attractions or with high-quality finishes and facilities.
However, the competition is stiff, and there may be fluctuations in demand depending on tourism and business travel trends.
Gungahlin
Gungahlin, with its expanding infrastructure, attracts families and groups looking for suburban comfort.
The demand in Gungahlin is for spacious homes or townhouses with amenities like a garden, parking, and a family-friendly environment. The average nightly rate for a three-bedroom house in Gungahlin is approximately $250-$300.
Target properties in well-connected areas or close to local attractions for better rental income.
The area is growing, but be aware of potential oversupply as new housing developments are completed.
Yarralumla
Yarralumla is popular among diplomats and high-ranking officials seeking short-term accommodation, given its proximity to embassies and the Parliament House.
Luxury properties, particularly those with extra security features, in Yarralumla are in demand. A high-end three-bedroom house in Yarralumla can fetch around $400 per night.
Properties near Lake Burley Griffin or with unique architectural features are particularly appealing.
The market in Yarralumla is niche, so while the returns can be high, the investment is significant, and the customer base is more limited.
Make sure you understand the real estate market in Canberra
Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.