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

Canberra’s housing market remains subdued, with values showing only a modest monthly rise of 0.2% in March 2025. Despite this slight improvement, the quarterly trend was negative at -0.1%, and over the past year, dwelling values declined -0.5%. The median dwelling value sits at $854,398, reflecting the city’s relatively high price point compared to other capitals.

Canberra Property Price Growth

In the annual context, Canberra has seen a -6.8% drop from peak (May 2022), signaling a persistent correction phase. The house sector declined -0.2% annually, while unit values fell -1.6%, indicating broad-based softness. Over the last five years, however, values are still 30.3% higher, suggesting Canberra remains a strong long-term performer despite recent dips.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st April 2025

Canberra Property Market Trends

Rental growth is also subdued, with Canberra recording the lowest gross rental yield among the capitals at 1.6%. This indicates weaker investor returns compared to cities like Perth or Adelaide. The market is facing affordability pressures, with stretched serviceability ratios and cautious credit conditions impacting buyer activity.

Change in dwelling values over key time periods

Canberra Property Market Forecast

Looking ahead, Canberra’s recovery will likely hinge on interest rate reductions, consumer sentiment, and cost of living relief. While a sustained upswing is uncertain, any easing in monetary policy and stable labour conditions could offer mild support for prices. However, housing affordability and reduced population growth are expected to keep growth contained.

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.

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Conclusion for Homeowners

Canberra’s housing market is in a phase of stabilization, not resurgence. While the long-term fundamentals remain relatively strong, current indicators point to a muted outlook, with limited upside in the short term. Investors and buyers may benefit from watching for signs of broader sentiment shifts or monetary easing to guide future engagement in this market.

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