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

Canberra’s housing market has started 2026 on a steady, less volatile footing than many other capitals. Values are rising, but at a measured pace that reflects tighter household budgets and more cautious borrowing conditions, while still being underpinned by generally limited stock and resilient local demand.

After a strong upswing earlier in the decade, Canberra remains slightly below its previous peak, suggesting the market is working through a mature phase where growth is more incremental than explosive. Even so, the city continues to offer a comparatively high-value market supported by stable employment fundamentals and a broad base of owner-occupiers.

Overall, conditions point to modest capital gains, with performance varying more clearly between houses and units.

Market Highlights

• Canberra dwelling values rose 0.3% over the past month and 1.3% over the past quarter.
• Annual dwelling value growth sits at 5.5%, indicating steady but moderated momentum.
• The city remains about 1.8% below its prior peak, signalling a more mature recovery phase.
• Median dwelling value is about $884,844, placing Canberra among Australia’s higher-priced markets.
• Houses are outperforming units, with houses up 7.1% annually while units are close to flat.
• Total returns are supported by income, with gross yields around 4.1% across dwellings.

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

Canberra home values have continued to edge higher into early 2026, with growth firming modestly over the past three months while remaining relatively contained compared with faster-moving markets. This pattern reflects a market that is still advancing, but with affordability and serviceability constraints limiting how quickly prices can rise.

Over the past year, Canberra dwelling values increased 5.5%, and total returns have been stronger once rental income is included. Longer-term performance also remains positive, with the market substantially higher than it was five years ago, even though it has not fully reclaimed its earlier peak.

A clear split is evident by dwelling type. House values have posted a stronger annual lift than the broader market, while unit growth has been minimal, suggesting buyers are still placing a premium on space and scarcity. This divergence is helping define where price pressure is most concentrated across Canberra.

Canberra Property Market Trends

Market conditions in Canberra are increasingly characterised by selective demand rather than a uniform lift across all segments. Buyers appear more price-sensitive, and competition is strongest where listings are limited and homes offer perceived long-term value, particularly detached housing.

Houses are leading the cycle, with stronger annual gains than units, while units have been comparatively subdued and have recently shown softer short-term movement. This gap points to differing supply-and-demand dynamics, including more choice in parts of the unit market and a stronger preference for houses among many owner-occupiers.

Rental indicators also suggest Canberra is not as tight as most other capitals, which can temper urgency for some buyers, even as rents continue to rise. Gross rental yields sit around the low-to-mid range for capital city markets, offering a reasonable income offset without being the primary driver of returns.

Overall, Canberra looks like a market where fundamentals remain supportive, but momentum is increasingly shaped by affordability ceilings and careful buyer decision-making.

Canberra Property Market Forecast

Canberra is likely to see slower, uneven growth through 2026 rather than a sharp change in direction. The key constraints are on the demand side: stretched affordability, the prospect of higher interest rates, and a more cautious credit environment that can reduce borrowing capacity and soften buyer confidence.

At the same time, several stabilisers should help prevent a material downturn. Supply remains constrained relative to underlying demand in many areas, and labour market resilience tends to limit distressed selling. These factors typically support prices even when buyer activity becomes more measured.

The most probable outcome is a continuation of moderate gains, with houses still better placed than units if buyer preferences remain focused on scarcity and family-oriented housing. Expect value growth to cool rather than reverse, with performance varying by suburb, price point, and dwelling type.

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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