Canberra Property Market – Prices, Trends, Forecast [January 2026]

Canberra’s housing market recorded modest but positive growth through the end of 2025, reflecting a city that has stabilised after the stronger volatility seen earlier in the cycle. Values edged higher in December and finished the year above where they started, though growth lagged most other capital cities. The median dwelling value sits just under $900,000, reinforcing Canberra’s position as a relatively high-priced but steady market.

Market Highlights

• Canberra recorded a modest uplift in home values across 2025, finishing the year with annual growth of 4.9%, well below the national pace.
• Price momentum remained subdued through the December quarter, reinforcing Canberra’s position as one of the more restrained capital city markets.
• Dwelling values remain slightly below their prior peak, signalling a slower recovery phase rather than a renewed upswing.
• Buyer activity continues to be shaped by affordability limits, with demand gravitating toward more accessible price points rather than premium stock.
• Rental conditions are still tight, though rental growth has eased relative to other capitals, offering limited relief without materially lifting yields.
• Low housing supply and stable employment fundamentals are helping to underpin values, reducing downside risk despite softer market sentiment heading into 2026.

Housing Metrics Overview

See how Canberra’s property values have performed across houses and units over various timeframes, along with returns, yields, and median prices.

Canberra Property Price Growth

Over the past year, Canberra dwelling values rose by 4.9%, placing the city toward the lower end of capital city performance. Monthly growth was mild at 0.2% in December, while quarterly growth reached 2.2%. Prices remain around 2% below their previous peak, reached in mid-2022, highlighting a slower recovery compared with cities that have already moved back to record highs.

View the latest property value movements across Australia’s capital cities. Use the filters to explore monthly, quarterly, and annual changes by dwelling type and region. Data sourced from CoreLogic.

Canberra Property Market Trends

Affordability constraints continue to shape Canberra’s market dynamics. Growth has been more subdued in higher-priced segments, while demand has gradually shifted toward more affordable dwellings. Rental conditions remain tight, but rental growth in the ACT was among the slowest nationally over 2025, easing some pressure on tenants. Investor yields remain relatively low compared with most capitals, reinforcing the market’s owner-occupier orientation.

The table outlines CoreLogic’s Home Value Index as of 1st December, showing peak declines, five-year growth, and changes since the first rate cut in February.

Canberra Property Market Forecast

Looking ahead, Canberra is expected to experience continued but restrained growth through 2026. Higher interest rates, stretched affordability, and cautious buyer sentiment are likely to limit upside. However, persistently low housing supply and stable public-sector employment should provide a floor under prices, reducing the risk of any sharp correction.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

Conclusion

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