Canberra Property Market – Prices, Trends, Forecast [November 2025]

Canberra’s housing market continued its steady but modest growth through October 2025, reflecting the national upswing in dwelling values that began after the first interest rate cut earlier in the year. The median dwelling value in the city reached $877,937, with overall prices rising 0.6% for the month, 1.7% over the quarter, and 3.2% across the year. These gains positioned Canberra among the slower-growing capitals, yet still within positive territory after a mild downturn that followed its 2022 market peak.

Market Highlights

• Canberra dwelling values increased 0.6% in October, 1.7% over the quarter, and 3.2% annually, with a median value of $877,937.
• House prices rose 4.2% over the year to about $1.02 million, while unit values held steady near $590,900.
• Property values remain 3.5% below the May 2022 peak, though they have gained 3.6% since February 2025 following the first rate cut.
• Rental conditions stayed tight, with vacancy rates near record lows and annual rent growth of 2.8% for houses and 3.4% for units.
• Gross rental yields averaged 4.0%, slightly below the combined regional figure, reflecting faster capital growth than rent increases.
• Regional variation within the ACT showed Molonglo leading annual growth at 6.8%, followed by Tuggeranong (4.7%) and Weston Creek (4.4%).
• Price momentum has been supported by ongoing supply shortages and resilient demand, even amid affordability challenges and inflation pressures.
• The market outlook remains steady, with moderate growth expected through 2026 as demand continues to outpace limited new housing supply.

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

From its peak in May 2022, Canberra’s dwelling values remain about 3.5% below their highest level. Nonetheless, values have increased 3.6% since February 2025, in line with renewed national momentum after the rate cut. House values climbed 4.2% annually, while unit prices remained flat. The city’s median house price rose to approximately $1.02 million, and units to around $590,900. The total annual return for dwellings sits at 7.3%, supported by stable capital growth and moderate rental yields.

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

Rental market conditions in Canberra stayed tight, with vacancy rates near record lows and annual rent increases of roughly 3.4% for units and 2.8% for houses. Despite this, yields remain compressed, averaging around 4.0%, as housing values have outpaced rent growth. Investor activity has strengthened in line with broader national patterns, although affordability pressures and limited new housing supply continue to temper demand from first-home buyers.

Within the ACT, growth varied slightly by region. According to October’s data, Molonglo led annual dwelling growth with a 6.8% increase, followed by Tuggeranong (4.7%) and Weston Creek (4.4%). Other areas such as South Canberra and Belconnen posted moderate gains, while North Canberra recorded minimal growth.

The table outlines CoreLogic’s Home Value Index as of 3rd November 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Canberra Property Market Forecast

Canberra’s housing outlook remains balanced but cautious. Persistent supply shortages and strong population growth are expected to support prices into early 2026, yet several headwinds could restrain rapid appreciation. Inflationary pressures, subdued consumer sentiment, and the likelihood of a pause in further rate cuts will limit borrowing capacity. Builders continue to face elevated construction costs, keeping new supply constrained, which may cushion any downturn.

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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