What are the best areas for real estate in Canberra? (2026)

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

Important Note for Foreign Buyers in January 2026

Before exploring the best neighborhoods in Canberra, foreign buyers need to understand a critical restriction currently in place.

From 1 April 2025 to 31 March 2027, foreign persons generally cannot apply to purchase an established dwelling in Australia, unless a specific exemption applies. This rule significantly shapes what you can actually buy in Canberra right now.

In practical terms, this means foreign investors should focus on new or near-new apartments and townhouses in growth corridors like Gungahlin, Belconnen, Molonglo Valley, and parts of the Inner North rather than classic established houses in prestige suburbs like Yarralumla or Deakin.

What's the Current Real Estate Market Situation by Area in Canberra?

Which areas in Canberra have the highest property prices per square meter in 2026?

As of early 2026, the three areas in Canberra with the highest estimated property prices per square meter are Yarralumla in postcode 2600, Deakin in postcode 2600, and Braddon in postcode 2612.

In these most expensive areas of Canberra, you can expect to pay roughly AUD 9,500 to AUD 10,500 per square meter for newer apartments and significantly more for premium houses with land.

The main factor driving these high prices is different for each area:

• Yarralumla: lakefront access, embassies, and extreme land scarcity make it irreplaceable prestige real estate.
• Deakin: proximity to Parliament House, top private schools, and established character homes on large blocks.
• Braddon: walkable CBD-edge lifestyle with cafes, restaurants, and strong rental demand from professionals.

Which areas in Canberra have the most affordable property prices in 2026?

As of early 2026, the most affordable areas in Canberra for property prices per square meter are Gungahlin in postcode 2912, Belconnen in postcode 2617, Tuggeranong in postcode 2900, and parts of Molonglo Valley like Coombs and Wright.

In these affordable Canberra areas, unit prices typically range from AUD 4,500 to AUD 6,500 per square meter, with entry-level apartments available from around AUD 400,000 to AUD 500,000.

The main trade-off in these lower-priced areas is that Gungahlin and Belconnen have significant unit supply which can mean slower capital growth, Tuggeranong is further from the CBD with longer commute times, and Molonglo Valley is still developing its amenities and transport connections.

You can also read our latest analysis regarding housing prices in Canberra.

Which Areas in Canberra Offer the Best Rental Yields?

Which neighborhoods in Canberra have the highest gross rental yields in 2026?

As of early 2026, the Canberra neighborhoods with the highest gross rental yields are Gungahlin district at approximately 6.5% for units, Belconnen district at approximately 6.3% for units, and Braddon/Turner at approximately 5.9% for units.

Across Canberra as a whole, typical gross rental yields range from about 2% to 3% for houses and 4% to 6.5% for units, with the best yields concentrated in unit-heavy suburbs rather than prestige house areas.

Here is why these top-yielding Canberra neighborhoods deliver higher returns than others:

• Gungahlin (postcode 2912): lower entry prices around AUD 438,000 combined with rents of AUD 546 per week.
• Belconnen (postcode 2617): strong tenant demand from University of Canberra students and hospital workers.
• Braddon/Turner (postcode 2612): premium rents from young professionals wanting walkable CBD-edge lifestyle.

Finally, please note that we cover the rental yields in Canberra here.

Which Areas in Canberra Are Best for Short-Term Vacation Rentals?

Which neighborhoods in Canberra perform best on Airbnb in 2026?

As of early 2026, the Canberra neighborhoods that perform best on Airbnb based on occupancy rates and average nightly rates are Braddon, Kingston Foreshore, Barton, and Civic/Canberra City, with average nightly rates ranging from AUD 120 to AUD 200.

In these top-performing Canberra Airbnb neighborhoods, monthly revenue typically ranges from AUD 2,500 to AUD 4,500 for well-managed properties, with top-performing listings earning over AUD 50,000 annually.

Here is what makes these Canberra neighborhoods outperform others for short-term rentals:

• Braddon: restaurant and cafe scene attracts weekend visitors and business travelers wanting walkability.
• Kingston Foreshore: lakeside dining and proximity to Old Parliament House draws tourists.
• Barton: government contractors and business travelers need accommodation near Parliament House.
• Civic: central location for events, conferences, and easy access to all attractions.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Canberra.

Which tourist areas in Canberra are becoming oversaturated with short-term rentals?

The Canberra areas at risk of short-term rental oversaturation are CBD fringe apartment blocks currently affected by light rail construction, high-density unit clusters in Belconnen town center, and investor-heavy buildings in parts of Gungahlin.

In these potentially oversaturated Canberra areas, there are now over 2,100 active Airbnb listings citywide, with the highest concentrations in generic apartment buildings within walking distance of the CBD.

The main sign that these Canberra areas have reached oversaturation is declining average daily rates despite steady occupancy, as similar apartments compete on price rather than quality or location uniqueness.

Which Areas in Canberra Are Best for Long-Term Rentals?

Which neighborhoods in Canberra have the strongest demand for long-term tenants?

The Canberra neighborhoods with the strongest demand for long-term tenants are Braddon, Turner, and O'Connor in the Inner North, Kingston and Griffith in the Inner South, Bruce and Belconnen near the university, and Gungahlin for family rentals.

In these high-demand Canberra rental neighborhoods, properties typically rent within 2 to 3 weeks, with the citywide vacancy rate sitting at around 1.5% as of early 2026.

Here is what type of tenant profile predominantly drives demand in each area:

• Braddon/Turner/O'Connor: young public servants and ANU-connected professionals seeking CBD access.
• Kingston/Griffith: senior government employees and diplomats wanting lifestyle amenities.
• Bruce/Belconnen: University of Canberra students and Calvary Hospital medical staff.
• Gungahlin/Franklin/Harrison: families with children attracted to newer homes and schools.

The key characteristic making these Canberra neighborhoods attractive to long-term tenants is the combination of stable public sector employment within easy commuting distance, quality schools, and accessible retail and dining options.

Finally, please note that we provide a very granular rental analysis in our property pack about Canberra.

What are the average long-term monthly rents by neighborhood in Canberra in 2026?

As of early 2026, average long-term monthly rents in Canberra range from approximately AUD 2,360 for units in Gungahlin to AUD 4,160 for houses in Deakin/Yarralumla, with the citywide average sitting around AUD 2,540 for units and AUD 3,360 for houses.

For entry-level apartments in the most affordable Canberra neighborhoods like Gungahlin and parts of Belconnen, typical monthly rents range from AUD 2,100 to AUD 2,500.

For mid-range apartments in average-priced Canberra neighborhoods like Turner and Bruce, typical monthly rents range from AUD 2,600 to AUD 2,900.

For high-end apartments in the most expensive Canberra neighborhoods like Deakin, Kingston Foreshore, and Barton, typical monthly rents range from AUD 2,900 to AUD 3,500, with premium houses exceeding AUD 4,000 per month.

You may want to check our latest analysis about the rents in Canberra here.

Which Are the Up-and-Coming Areas to Invest in Canberra?

Which neighborhoods in Canberra are gentrifying and attracting new investors in 2026?

As of early 2026, the Canberra neighborhoods that are currently gentrifying and attracting new investors include Dickson and Watson in the Inner North, Lyneham and Downer near the city, and Coombs and Denman Prospect in the Molonglo Valley growth corridor.

These gentrifying Canberra neighborhoods have experienced annual price appreciation rates of approximately 3% to 5% over recent years, with Rivett in Weston Creek showing 37% house price growth over five years and Lyons attracting AUD 127 million in new development projects.

Which areas in Canberra have major infrastructure projects planned that will boost prices?

The Canberra areas with major infrastructure projects expected to boost property prices are the CBD/Civic edge, City South, and walkable precincts near future light rail stops in Braddon, Turner, and parts of Acton.

The specific infrastructure project underway is Light Rail Stage 2A from City to Commonwealth Park, which will improve accessibility to the Parliamentary Triangle and lakefront areas, with subsequent stages planned to extend further south.

Historically, Canberra areas near completed infrastructure like Light Rail Stage 1 to Gungahlin have seen price premiums of 5% to 15% within a few years of completion, though construction phases can temporarily dampen prices on directly affected streets.

You'll find our latest property market analysis about Canberra here.

Which Areas in Canberra Should I Avoid as a Property Investor?

Which neighborhoods in Canberra with lots of problems I should avoid and why?

The Canberra neighborhoods that property investors should generally approach with caution include specific high-density apartment precincts in parts of Belconnen and Gungahlin, CBD fringe blocks under active construction disruption, and buildings with high strata fees and poor owner-occupier appeal.

Here are the main problems affecting each of these Canberra areas:

• Oversupplied Belconnen tower precincts: too many similar investor-owned apartments competing for the same tenants.
• Gungahlin high-density clusters: continuous new supply pipeline keeps capital growth subdued.
• CBD fringe construction zones: noise, dust, and access issues temporarily reduce rental appeal and resale values.
• Denman Prospect (parts of): oversupply after rapid development has pushed prices down 22% in some areas.

For these Canberra neighborhoods to become viable investment options, the supply pipeline would need to slow significantly, construction disruption would need to end, and owner-occupier demand would need to increase to support price stability.

Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Canberra.

Which areas in Canberra have stagnant or declining property prices as of 2026?

As of early 2026, the Canberra areas with stagnant or declining property prices include Gungahlin district units showing negative 2.5% year-on-year change, Inner North CBD edge units in postcode 2612 showing negative 2.4% year-on-year change, and parts of Denman Prospect which saw house prices fall 22% over 2024.

These Canberra areas have experienced price declines or stagnation of approximately 2% to 5% over the past year for units, while citywide unit values grew only 0.3% compared to 4.2% for houses.

Here is the main underlying cause of price stagnation or decline in each area:

• Gungahlin district units: continuous new apartment supply outpacing demand from owner-occupiers.
• Postcode 2612 units: investor-heavy ownership and similar stock creating price competition.
• Denman Prospect: rapid initial development created oversupply as the suburb matured.
• Forrest apartments: premium pricing met with buyer hesitation, causing 15% median price drops.

Which Areas in Canberra Have the Best Long-Term Appreciation Potential?

Which areas in Canberra have historically appreciated the most recently?

The Canberra areas that have historically appreciated the most over the past five to ten years are Yarralumla, Deakin, and Red Hill in the Inner South for prestige homes, and Ainslie, O'Connor, and Hackett in the Inner North for family suburbs.

Here are the approximate appreciation percentages these top-performing Canberra areas have achieved:

• Yarralumla: approximately 40% to 50% total growth over 10 years for established houses.
• Ainslie: approximately 35% to 45% total growth over 10 years despite recent softening.
• Rivett: 37% house price growth over just 5 years from 2020 to 2025.
• Belconnen units: 17.8% growth in 2024 alone, outperforming other unit markets.

The main driver of above-average appreciation in these Canberra areas is land scarcity combined with consistent demand from high-income owner-occupiers, particularly in suburbs with excellent schools, green space, and convenient access to the CBD and Parliament House.

By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Canberra.

Which neighborhoods in Canberra are expected to see price growth in coming years?

The Canberra neighborhoods expected to see the strongest price growth in coming years are Braddon and Turner for walkable CBD-edge living, Woden Valley suburbs like Lyons and Pearce for development uplift, Gungahlin for ongoing population growth, and Belconnen for affordability-driven demand.

Here are the projected annual price growth percentages for these high-potential Canberra neighborhoods:

• Braddon/Turner: 3% to 5% annual growth expected as light rail access improves.
• Woden Valley (Lyons, Pearce): 4% to 6% potential as AUD 127 million in new developments complete.
• Gungahlin: 2% to 4% for houses, though units may underperform due to supply.
• Belconnen: 3% to 5% as affordability attracts first home buyers using expanded government schemes.

The single most important catalyst expected to drive future price growth in these Canberra neighborhoods is the combination of infrastructure improvements, particularly light rail extensions, and constrained housing supply for detached homes pushing demand into well-located unit and townhouse markets.

What Do Locals and Expats Really Think About Different Areas in Canberra?

Which areas in Canberra do local residents consider the most desirable to live?

The Canberra areas that local residents consider the most desirable to live are Yarralumla, Deakin, Red Hill, and Forrest in the Inner South, and Ainslie, O'Connor, and Hackett in the Inner North.

Here is what makes these Canberra areas most desirable to locals:

• Yarralumla: lakefront access, embassies, and large established homes with mature gardens.
• Deakin: proximity to top private schools like Canberra Grammar and quiet leafy streets.
• Ainslie: heritage character homes, Mount Ainslie walking trails, and strong community feel.
• O'Connor: family-friendly streets with easy cycling distance to the CBD and ANU.

The typical resident demographic in these locally-preferred Canberra areas includes senior public servants, established professionals, diplomats, and families with school-age children seeking stability and lifestyle amenities.

Local preferences in Canberra often differ from what foreign investors target, as locals prioritize established houses with land and lifestyle while investors typically seek units with higher rental yields in more accessible price ranges.

Which neighborhoods in Canberra have the best reputation among expat communities?

The Canberra neighborhoods with the best reputation among expat communities are Braddon and Turner for young professionals, Kingston Foreshore for lifestyle seekers, Barton for government-connected workers, and Belconnen for families wanting affordability with amenities.

Here is why expats prefer these Canberra neighborhoods over others:

• Braddon/Turner: walkable restaurants and cafes, abundant rental stock, and easy CBD access.
• Kingston Foreshore: waterfront dining, modern apartments, and weekend lifestyle options.
• Barton: walking distance to Parliament House and government departments.
• Belconnen: international food options, Westfield shopping, and university proximity.

The typical expat profile in these popular Canberra neighborhoods includes government contractors on temporary assignments, international students at ANU and UC, diplomatic staff, and professionals relocating from other Australian cities for public service roles.

Which areas in Canberra do locals say are overhyped by foreign buyers?

The Canberra areas that locals commonly say are overhyped by foreign buyers are generic CBD-fringe apartment towers marketed as luxury, certain new developments in Molonglo Valley promoted heavily offshore, and high-rise precincts in Belconnen town center.

Here is the main reason locals believe these Canberra areas are overvalued or overhyped:

• CBD apartment towers: marketed as premium but often have high strata fees and average build quality.
• Molonglo off-the-plan: sold at premium prices before amenities and transport connections exist.
• Belconnen high-rises: presented as lifestyle living but lack the walkability of genuinely central areas.

Foreign buyers typically see newness, modern finishes, and marketing materials showing lifestyle images, while locals know that these buildings often have high investor concentration, weak resale demand from owner-occupiers, and location limitations that marketing materials downplay.

By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Canberra.

Which areas in Canberra are considered boring or undesirable by residents?

The Canberra areas that residents commonly consider boring or undesirable are outer Tuggeranong suburbs far from town centers, car-dependent pockets of Gungahlin without walkable amenities, and some older Belconnen suburbs lacking cafe and restaurant options.

Here is the main reason residents find these Canberra areas boring or undesirable:

• Outer Tuggeranong: long commute to CBD, limited nightlife, and fewer dining options.
• Car-dependent Gungahlin pockets: newer suburbs without established cafes or walkable streets.
• Older Belconnen suburbs: suburban feel without the urban amenities younger residents want.

However, these same boring Canberra areas can be excellent for families seeking quiet streets, good schools, larger homes, and lower prices, so undesirability for lifestyle seekers can mean opportunity for long-term family-oriented investors.

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.