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

Canberra’s property market is steady rather than surging, with values holding broadly flat over the month while still showing moderate annual growth. For homeowners and sellers, the key story is a market that has regained some ground over the past year, but where momentum remains softer than in faster-growing capitals such as Perth, Brisbane and Adelaide. This creates a more measured selling environment, where pricing, presentation and buyer targeting matter.

Key Takeaways

• Canberra dwelling values were unchanged over the month, rose 0.4% over the quarter, and increased 5.6% over the year.
• The median dwelling value sits at $898,242, placing Canberra below Sydney, Brisbane, Perth and Adelaide, but above Melbourne, Hobart and Darwin.
• Houses are outperforming units, with annual house values up 7.0% compared with just 0.9% for units.
• Canberra remains 1.4% below its previous market peak, showing recovery is underway but not yet complete.
• Rental growth is relatively soft, with house rents up 3.3% annually and unit rents up 2.0%, while gross dwelling yields sit at 4.0%.
• The strongest ACT sub-markets include Weston Creek, Tuggeranong and Belconnen, with annual dwelling growth of 10.1%, 7.5% and 6.4% respectively.

Canberra Property Price Growth

Canberra’s price growth has been positive but subdued. Dwelling values were flat over the month, up 0.4% across the quarter and 5.6% higher over the year, with a total return of 9.9%. The median dwelling value is now $898,242, reflecting a market that is still growing annually but with limited short-term acceleration.

The split between houses and units is important. House values have risen 7.0% over the year, supported by a median value of $1,049,789, while units have recorded much weaker annual growth of 0.9% and a median value of $593,303. This suggests buyer demand is more firmly concentrated in detached housing, while the unit market remains comparatively soft.

Canberra Property Market Trends

A closer look at Canberra shows a market moving at a slower pace than many other capitals. While annual growth is positive, the city’s monthly and quarterly results point to more cautious buyer behaviour and less urgency than in markets where stock shortages and affordability shifts are driving stronger gains.

Performance also varies clearly by area. Weston Creek recorded the strongest annual dwelling growth at 10.1%, followed by Tuggeranong at 7.5% and Belconnen at 6.4%. Woden Valley, Gungahlin, South Canberra, Molonglo and North Canberra showed more moderate gains, suggesting buyers are still selective and value-sensitive across the ACT.

The table gives a quick look at how values are performing by region.

Canberra Property Market Forecast

The likely direction for Canberra is continued modest growth rather than a sharp upswing. The market has annual momentum, particularly in houses, but the flat monthly result and low quarterly gain show that conditions are not accelerating strongly. Affordability constraints, tighter borrowing conditions and cautious buyer sentiment are likely to keep price growth contained.

At the same time, several factors should help prevent a meaningful downturn. Canberra remains only 1.4% below its previous peak, house values are still rising, and supply constraints across the broader housing market continue to support prices. Sellers should expect a balanced market where well-positioned homes can still perform strongly, but ambitious pricing may meet more resistance.

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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