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Home › Market Insights › Fastest Growing Suburbs in Canberra (2025)
Are you thinking about buying, investing, or upgrading your home in Canberra? You’ve probably heard that some suburbs are growing much faster than others, both in price and in popularity. But how do you know which areas are truly rising, and which ones might be risky?
In this guide, we’ll look at:
We’ll also explain how to interpret the numbers because not every suburb showing “big growth” means it’s a sure bet.
Key Takeaways Canberra’s market is rebounding in 2025, with home prices almost back to their previous peak Top growth suburbs include Palmerston, Gungahlin, and Molonglo Valley, all showing strong price and population growth. Houses are outperforming units for capital growth, while units offer higher rental yields (around 5%+ in some areas). Molonglo Valley and Gungahlin are Canberra’s biggest population growth corridors, supported by new schools and transport. Look for affordability next to premium suburbs, these “next best” areas often deliver the strongest medium-term gains. Check supply and infrastructure before buying; too many new builds can flatten prices short-term. A gross yield of 3.5–4% for houses and around 5% for units is considered healthy in the ACT market. Always verify data periods (e.g., “12 months to September 2025”) when reviewing growth stats. Partner with a trusted local agent to understand street-level demand, strata costs, and rental trends before you buy.
Key Takeaways
Next step: If you’re thinking about buying or selling in Canberra, speaking with a trusted local agent can give you real insight into current prices, buyer demand and the best timing for your move. A quick conversation now could save you weeks of guesswork later.
Before naming suburbs, it’s important to understand how we measure “growth”.
When we say a suburb is “growing”, we’re usually talking about capital growth, how much its median sale price (the middle price of all sales) has increased over time. For this article, we use the latest 12-month price change for both houses and units, based on data from trusted Australian sources like:
Every statistic you see here is clearly dated (for example, “12 months to September 2025”).
Price isn’t the only sign of a growing suburb. We also look at:
For example, Canberra’s Molonglo Valley (home to Wright, Coombs, and Denman Prospect) continues to expand rapidly, supported by new community facilities and family-friendly estates. This kind of development often drives both population and price growth.
Some suburbs show high percentage growth simply because there were only a few sales, not because the market is booming. That’s why we combine price growth with population and development trends to get a more realistic picture.
If a suburb’s growth looks too good to be true, check how many homes actually sold during that period. Fewer sales mean the numbers can easily be skewed.
Canberra’s housing market has been quietly regaining momentum in 2025.
After a softer 2023–2024 period, the latest PropTrack Home Price Index shows ACT home values are only about 1.3% below their previous peak, and prices are trending upward again into spring. In short, Canberra has recovered strongly, and confidence is back in the market.
But what’s really happening beneath those numbers? Let’s break it down.
Most of Canberra’s current price momentum is centred around:
For first-time buyers and investors, this market phase is encouraging. Prices are rising again, but not overheated. That means:
Canberra’s property market in 2025 isn’t about quick wins, it’s about steady, predictable growth. Suburbs that combine affordability, transport, and new infrastructure are leading the charge, and these are the areas we’ll explore next.
* “12-Month Growth” refers to the latest published annual change in median sale values for houses or general dwellings.† “Recent Median Price” is drawn from the latest suburb or ACT median where suburb is available.‡ “Approx. Gross Yield” is indicative, actual yield depends on purchase price, rent, and costs.Sources: Which Real Estate Agent, API Magazine, Savings
Below are detailed snapshots of selected suburbs from the table above, why they’re rising, who they suit, and things to watch.
Get a professional appraisal so you know your current home’s worth before you move forward.
Population growth and new housing supply often pre-signal price and rent pressure. In Canberra, the Molonglo Valley stands out: ACT Treasury’s latest projections (2025–2065) show Molonglo is expected to record the fastest population growth rate in the Territory as Denman Prospect and Whitlam build out. That long pipeline of residents, schools and services helps support values over time.
If a suburb (or district) is adding people and improving transport and amenities, it’s more likely to hold value through different market cycles. ACT Government releases in 2025 explicitly highlight growth concentrated in Molonglo (alongside steady growth across districts).
Canberra’s 2025 story is a two-track market.
Houses = scarcity & growth potential. Units = cash flow potential. Choose based on your goal, and verify with current local data before you buy.
Even hot suburbs have pitfalls. Here’s what to look out for:
Canberra’s property market in 2025 is showing steady, sustainable growth. Suburbs like Palmerston, Gungahlin, and Molonglo Valley are leading the charge, driven by new infrastructure, family demand and solid rental returns. Whether you’re buying or investing, focus on quality, location and long-term fundamentals, not just short-term spikes, and you’ll position yourself well in the ACT’s evolving market.
Yes, several Gungahlin pockets keep attracting young families and upgraders due to amenities + transport and relative affordability versus the inner city. The Allhomes/Domain data above highlights Gungahlin +6.1% (to Dec-2024), with neighbouring Palmerston +11.4% over the same window.
As of October 2025, houses are ahead on annual price growth, while units are more mixed. SQM’s weekly asking-price series shows Canberra houses +8.2% YoY vs units –1.9% YoY (week ending 7 Oct 2025). This reflects tighter detached supply and more variable apartment pipelines.
There’s no single “right” number, but a common guide is ~3.5–4% gross for houses and ~5%+ for well-located units (before costs). Check current suburb-level rents, levies and vacancy to refine your target; ACT vacancies were around ~1.3% in Jan 2025, remaining tight through winter (Jun–Sep 2025 releases). Tight vacancies support rents but always run the building-specific numbers.
Monthly is ideal, aligned to PropTrack/CoreLogic releases, and quarterly for suburb medians from Domain/Allhomes. Note the exact period (e.g., “12 months to September 2025”) next to every figure you rely on.
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