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Yes, the analysis of Canberra's property market is included in our pack
Canberra's property market offers stability and selective growth opportunities that distinguish it from Australia's more volatile capital cities.
As of September 2025, Canberra presents a unique investment landscape with moderate price recovery, strong rental yields, and specific suburbs showing impressive double-digit growth, making it worth considering for both homebuyers and investors seeking alternatives to Sydney and Melbourne's expensive markets.
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Canberra's property market is recovering with houses showing stronger performance than apartments, offering rental yields among Australia's highest capitals.
Select suburbs like Denman Prospect and Macarthur are leading growth with 14% and 10% increases respectively in the past six months.
| Market Aspect | Current Status | Outlook |
|---|---|---|
| House Prices | $975,387 median, +0.8% quarterly | 3-6% growth expected by mid-2026 |
| Unit Prices | $594,769 median, -1.4% annually | Modest 3% growth projected |
| Rental Yields | Among highest in Australia | Continued strength expected |
| Vacancy Rate | 1.6% - very tight market | Stable demand anticipated |
| Growth Suburbs | Denman Prospect (+14%), Macarthur (+10%) | Continued outperformance likely |
| Affordability | More affordable than Sydney/Melbourne | Maintains competitive advantage |
| Market Stability | Lower volatility than major capitals | Steady, moderate growth expected |
How have Canberra property prices moved over the past 12 months compared with Sydney and Melbourne?
Canberra's property market has shown relative stability compared to Sydney and Melbourne over the past 12 months.
House prices in Canberra experienced a modest annual decline of -0.7% to -0.5%, but recent quarterly data shows renewed growth of 0.8%. The median house price reached $975,387 as of May 2025, indicating the market has found its floor and begun recovering.
In contrast, Sydney and Melbourne both outpaced Canberra for annual growth, contributing to the national capital city price increase of 3.2% over the 12-month period. However, this comparison reveals Canberra's stability advantage rather than a weakness.
Canberra's apartment market faced greater headwinds with unit prices declining -1.4% annually to a median of $594,769. This reflects ongoing supply pressures in the unit market, while the house market demonstrates greater resilience.
The ACT's property market volatility remains significantly lower than Sydney and Melbourne, making it an attractive option for buyers seeking predictable growth patterns rather than dramatic price swings.
What are the short-term forecasts for Canberra's property market in the next 12 months?
Canberra's property market is positioned for moderate recovery over the next 12 months, with houses expected to significantly outperform apartments.
House prices are forecast to rise 3-6% by mid-2026, potentially pushing the median house price toward $1.1 million. This recovery remains below the 2022 peak levels, suggesting sustainable rather than speculative growth.
Unit prices are projected to increase modestly by approximately 3% or $14,000, bringing the median to around $608,000. However, apartments will likely remain 15% below their 2023 peak due to continued oversupply in certain segments of the market.
The rental market will continue supporting property values with Canberra maintaining one of Australia's lowest vacancy rates at 1.6%. Weekly median rents of $693 demonstrate strong underlying demand that underpins both investment returns and future capital growth.
It's something we develop in our Australia property pack.
What are the medium-term projections for property values in Canberra over the next three to five years?
Canberra's medium-term outlook indicates steady, sustainable growth driven by fundamental economic strengths.
The market should maintain a moderate growth trajectory over three to five years, supported by Canberra's affordability advantage, stable public sector employment, and measured population expansion. Houses are expected to deliver more robust appreciation than apartments during this period.
Unlike Sydney and Melbourne, Canberra's growth will likely remain below national volatility levels, providing investors and homebuyers with predictable returns. This stability comes from the city's economic base being less susceptible to speculative bubbles and more dependent on steady government employment.
Population growth and infrastructure development will support demand, particularly in outer suburbs where land supply allows for sustainable expansion without the constraints faced by established inner-city areas.
The apartment market may take longer to recover fully, with oversupply issues potentially persisting for 2-3 years before supply and demand reach better balance.
What is the long-term outlook for Canberra housing compared with the national average?
Canberra's long-term property outlook positions it as one of Australia's most stable and resilient capital city markets.
Historically, Canberra tracks below the national average for price volatility while demonstrating superior resilience during market downturns. This pattern is expected to continue, with the city experiencing more gradual upswings and less severe corrections than Sydney or Melbourne.
Canberra's current status as one of the more affordable capitals on a price-to-income basis significantly boosts its long-term demand potential. As Sydney and Melbourne become increasingly unaffordable for average buyers, Canberra represents a viable alternative for both residents and investors.
The city's economic foundation built on government employment provides long-term stability that many other capitals lack. This employment base is less susceptible to economic cycles and provides consistent demand for both rental and purchase markets.
Climate change and lifestyle factors may increasingly favor Canberra's cooler climate and lower density compared to major capitals, potentially driving future migration and property demand.
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Which suburbs in Canberra are showing the strongest price growth right now?
Canberra's growth leaders are primarily located in newer suburban developments and established family-friendly areas.
| Suburb | 6-Month Price Growth | Median Value (2025) |
|---|---|---|
| Denman Prospect | 14% | $1,255,000 |
| Macarthur | 10% | $1,053,000 |
| Whitlam | 9% | $753,000 |
| Taylor | 8% | $1,089,000 |
| Fraser | 7% | $961,000 |
| Belconnen | 6% | $850,000 |
| Gowrie | 6% | $920,000 |
Denman Prospect leads with exceptional 14% growth over six months, driven by its master-planned community appeal and premium positioning. Macarthur follows with 10% growth, benefiting from its established family amenities and proximity to employment centers.
The newer suburbs of Whitlam, Taylor, and Fraser demonstrate that outer areas are delivering strong returns while maintaining relative affordability compared to established inner suburbs.
Additional strong performers include Monash, Gilmore, and Red Hill, indicating growth is spread across different areas rather than concentrated in a single district.
Which areas of Canberra are considered undervalued or more affordable for entry-level buyers?
Canberra's most accessible entry points combine affordability with strong growth potential, particularly in outer and northern suburbs.
1. **Belconnen and surrounding areas** - Median values between $700,000-$960,000 for houses, offering established amenities with room for appreciation2. **Whitlam** - At $753,000 median, provides new housing with 9% recent growth, ideal for first-time buyers3. **Taylor** - $1,089,000 median but strong infrastructure development supporting future value4. **Harrison and Mawson** - Unit prices $510,000-$610,000, perfect for apartment buyers5. **Outer Gungahlin suburbs** - New developments with median values under $900,000These areas provide the best combination of accessibility and growth potential for buyers entering the market. The unit market in secondary suburbs offers particularly attractive entry points with median prices around $510,000-$610,000.
Belconnen stands out for its established infrastructure, transport links, and shopping facilities while maintaining lower entry costs than inner Canberra suburbs.
Fringe suburbs benefit from government planning initiatives and infrastructure development that will support long-term value growth as Canberra expands.
How do price trends differ between apartments, townhouses, and detached houses in Canberra?
Property type performance in Canberra shows clear differentiation, with houses significantly outperforming apartments.
Detached houses demonstrate resilience with modest but positive quarterly growth of 0.8% and a median price of $975,387. Despite annual declines of -0.5%, houses have found their market floor and begun recovering.
Apartments face ongoing challenges with annual price decreases of -1.4% and a median of $594,769. This reflects supply pressures and buyer preference for houses, particularly post-pandemic lifestyle changes favoring space and privacy.
Townhouses track closely with detached house performance but show higher volatility, particularly in newer suburbs and developments. They represent a middle ground between apartment affordability and house lifestyle benefits.
The house-apartment price gap continues widening, with houses at $975,387 median significantly exceeding apartments at $594,769. This $380,000 difference reflects strong preference for detached housing in Canberra's low-density urban environment.
Future performance expectations favor houses over apartments, with forecasts suggesting houses will achieve 3-6% growth while apartments manage only 3% increases over the next 12 months.
What is the current rental yield in different parts of Canberra, and how does it compare to Sydney and Melbourne?
Canberra delivers some of Australia's strongest rental yields among capital cities, supported by exceptionally low vacancy rates and steady demand.
The median weekly rent of $693 combined with property prices creates attractive gross rental yields that exceed both Sydney and Melbourne. Canberra's 1.6% vacancy rate represents one of the tightest rental markets in Australia, supporting consistent rental income for investors.
House rents increased 1.6% annually, demonstrating steady growth without the dramatic spikes seen in other capitals. This moderate growth supports long-term tenant retention while providing reliable income streams for property investors.
Compared to Sydney and Melbourne, Canberra's rental market offers greater stability with less volatile rent increases. While Sydney and Melbourne experience rapid rental growth followed by corrections, Canberra maintains consistent upward momentum.
Different Canberra areas show varying yields, with outer suburbs and unit markets typically delivering higher percentage returns due to lower entry prices, while inner suburbs provide lower yields but stronger capital growth potential.
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 has rental demand shifted in Canberra in the past year, and what's the expected trend?
Canberra's rental demand has remained exceptionally robust throughout the past year, creating one of Australia's tightest rental markets.
The 1.6% vacancy rate demonstrates sustained high demand that has not weakened despite new supply additions. Rental demand particularly favors houses over apartments, with rental houses showing stronger rent increases and faster letting times.
Supply of new units has added choice for tenants without significantly slowing overall demand, indicating the market can absorb new supply while maintaining tight conditions. This suggests underlying demand drivers remain strong rather than artificial scarcity driving the market.
Expected trends point to continued robust rental demand driven by Canberra's affordability advantages and government employment stability. Migration patterns favoring lifestyle and affordability over Sydney and Melbourne support ongoing rental market strength.
The rental market benefits from public sector employment providing stable tenant income and job security, reducing rental arrears and vacancy risks compared to markets dependent on volatile private sector employment.
What is the average budget needed to buy a home in each key Canberra suburb today?
Canberra's property budgets vary significantly between districts and property types, offering options across different price ranges.
| District | Houses Budget Range | Units Budget Range |
|---|---|---|
| Inner North | $950,000 - $1,200,000 | $600,000 - $700,000 |
| Belconnen | $700,000 - $960,000 | $500,000 - $600,000 |
| Woden Valley | $850,000 - $1,050,000 | $600,000 - $610,000 |
| Tuggeranong | $850,000 - $1,050,000 | $550,000 - $610,000 |
| Gungahlin | $900,000 - $1,100,000 | $550,000 - $650,000 |
| Growth Suburbs (Denman Prospect) | $1,200,000 - $1,300,000 | $650,000 - $750,000 |
| Affordable Options (Whitlam, Taylor) | $750,000 - $1,100,000 | $550,000 - $600,000 |
Belconnen offers the most affordable house options with budgets starting from $700,000, while premium growth suburbs like Denman Prospect require $1.2-1.3 million for houses.
Unit buyers can access the market from around $500,000 in Belconnen, with most districts offering apartment options between $550,000-$650,000. This represents significant affordability compared to Sydney and Melbourne unit markets.
It's something we develop in our Australia property pack.
If buying to live in, which areas provide the best balance of lifestyle, amenities, and future value growth?
For homebuyers seeking lifestyle balance with investment potential, specific Canberra suburbs stand out for combining amenities with growth prospects.
1. **Macarthur** - Premium family environment with excellent schools, parks, and 10% recent price growth2. **Taylor** - Modern master-planned community with new amenities and strong infrastructure development3. **Whitlam** - Emerging suburb with 9% growth, family-friendly design, and future development potential4. **Belconnen** - Established amenities, major shopping center, transport links, and steady value appreciation5. **Gungahlin** - Good commuting access, modern facilities, new infrastructure, and consistent growth patternsThese suburbs offer the optimal combination of family amenities, lifestyle benefits, and capital growth potential. Macarthur and Taylor particularly excel for families seeking new housing with premium facilities.
Belconnen provides established amenities including major shopping, entertainment, and transport infrastructure while maintaining growth potential and affordability compared to inner Canberra.
The newer planned communities of Taylor and Whitlam offer modern amenities, family-friendly environments, and the benefit of contemporary urban planning with integrated community facilities.
If buying for investment, which property type and suburb in Canberra offers the best potential for rental return and resale value?
Investment success in Canberra depends on balancing rental yields with capital growth potential across different property types and locations.
For capital growth focus, houses in growth corridors like Denman Prospect, Macarthur, and Whitlam offer the best medium-term appreciation potential. Denman Prospect's 14% six-month growth demonstrates exceptional capital performance for investors willing to accept higher entry costs.
For rental yield focus, apartments in established locations like Harrison and Belconnen provide reliable rental returns with lower purchase prices. These areas offer strong rental demand from government employees and professionals seeking affordable housing.
The optimal investment strategy combines moderate capital growth suburbs like Taylor and Macarthur with house properties that deliver both rental strength and appreciation potential. These areas provide family appeal driving both rental demand and resale values.
Avoid oversupplied apartment markets in favor of established unit locations or focus on houses where supply constraints support both rental and capital growth. The $380,000 median price difference between houses and units suggests houses offer superior long-term investment returns.
It's something we develop in our Australia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Canberra's property market offers compelling opportunities for both homebuyers and investors seeking stability and selective growth.
The combination of affordability, strong rental yields, and specific high-growth suburbs makes Canberra worth serious consideration compared to Sydney and Melbourne's volatile and expensive markets.