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

Canberra’s property market is showing modest growth through 2025, reflecting a stabilising trend after previous corrections. While not a standout performer, the city is maintaining a gentle recovery in values and a relatively balanced rental market. With a median dwelling value of $901,271, Canberra remains one of Australia’s more expensive capitals, sitting just below Sydney.

Market Highlights

• Dwelling values rose 0.5% in July, contributing to 1.3% quarterly growth and a mild 0.6% annual increase.
• Canberra remains 5.2% below its May 2022 peak, indicating an ongoing but gentle recovery phase.
• Rent growth was moderate: 1.8% for houses and 2.5% for units, with gross rental yields at 4.0%, slightly above capital city average.
• Strongest local performer: Molonglo (5.5% annual growth); weakest: North Canberra (-1.9%).
• Outlook is steady—rate cuts, low supply, and stable demand expected to support slow, continued growth.

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

In July, Canberra’s dwelling values rose by 0.5%, with a quarterly increase of 1.3% and a mild annual gain of 0.6%. These figures indicate subdued but steady momentum. However, Canberra is still 5.2% below its market peak in May 2022, showing that while prices are recovering, they haven’t yet fully bounced back.

Within the ACT, there was mixed growth across submarkets. Molonglo led with a 5.5% annual rise, followed by Tuggeranong (2.6%), while North Canberra experienced a -1.9% drop.

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.

CoreLogic Home Value Index, Released on 1st August 2025

Canberra Property Market Trends

Canberra’s rental market remains firm but not overheated. Over the past year, house rents rose 1.8%, and unit rents increased 2.5%, both sitting around the middle of the national spectrum. Gross rental yields for dwellings stand at 4.0%, offering moderate investor appeal—better than Sydney or Melbourne, but lower than Perth or Darwin.

The capital’s rental trends suggest a market that is balanced—tenant demand is stable, and landlords are seeing reasonable, though not exceptional, returns.

Dwelling value growth over the past 5 and 10 years, including combined capital and regional market performance.

Canberra Property Market Forecast

The outlook for Canberra’s housing market is cautiously optimistic. With interest rate cuts expected, buyer confidence is likely to improve, especially among upgraders and investors. However, affordability remains a headwind due to Canberra’s relatively high price base.

Low levels of new housing supply may add slight upward pressure to prices, but Canberra is unlikely to see the rapid growth observed in cities like Perth or Brisbane. Instead, its trajectory is expected to remain modest and consistent, in line with macroeconomic stability and local demand.

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 property market is in a slow recovery phase, characterised by stable prices, mild rent growth, and moderate yields. While it’s not a top performer in 2025, its long-term fundamentals remain sound. For investors and homebuyers seeking predictability and relative market balance, Canberra presents a steady, if subdued, opportunity.

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