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

Canberra’s housing market is steady and improving. Dwelling values rose 0.7% in September to a median of $885,942, supported by tight listings and firmer buyer sentiment.

Market Highlights

• Dwelling values rose 0.7% in September, with a median of $885,942.
• Quarterly growth 1.7%; annual 2.5%; still ~4% below prior peak.
• Houses outpaced units over the year (≈3.4% vs -0.3%).
• Gross rental yields around 4.0% overall (≈3.7% houses; 5.2% units).
• Listings remain below average; lower rates have lifted borrowing capacity and buyer sentiment.
• Stronger pockets include Molonglo (~8.7%); North Canberra softened slightly (~-0.7%).
• Outlook: gradual gains, houses likely to lead; affordability keeps a lid on the pace.

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

Momentum is moderate: values increased 1.7% over the quarter and 2.5% year-on-year. Since the first 2025 rate cut, prices are up 3.1%. Over five years, Canberra has gained 29.8% but remains about 4% below its prior peak. Houses outpaced units over the year (3.4% vs. -0.3%).

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

Supply sits below average, favouring sellers, while lower rates have lifted borrowing capacity. Gross rental yields are around 4.0% overall (roughly 3.7% for houses; 5.2% for units), offering comparatively solid investor returns for a capital city. Growth is uneven across the city: Molonglo led (~8.7%), while North Canberra softened slightly.

The table outlines CoreLogic’s Home Value Index as of 1st September 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Canberra Property Market Forecast

With purchasing power improving and stock still scarce, prices are likely to grind higher rather than surge. Houses should keep a slight edge over units. Investor interest should persist, but affordability and already-high base values will temper the pace.

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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