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

Canberra’s property market has entered a sharper reset, with values easing in the short term while still holding onto annual gains. Dwelling values fell 0.6% over the month and 1.3% over the quarter, bringing the median value to $885,254. Even so, the market remains 2.9% higher over the year, showing that the downturn is not uniform across timeframes or property types.

Key Takeaways

• Canberra dwelling values fell 0.6% in the month and 1.3% over the quarter, signalling softer buyer demand.
• The market remains 2.9% higher year-on-year, with total returns at 7.2%.
• Houses are outperforming units annually, rising 3.5% compared with 0.7% for units.
• The median house value is $1,035,828, while the median unit value is $597,430.
• Canberra is now 2.9% below its May 2022 peak, but values are still 62.8% higher over 10 years.
• Sellers may need sharper pricing strategies as buyers gain more choice and negotiation power.

Canberra Property Price Growth

The latest numbers show a market losing momentum in the near term. Canberra dwelling values declined 0.6% over the month, 1.3% over the quarter, and 0.8% year-to-date, although annual growth remains positive at 2.9%.

Houses have held up better than units over the year, with house values rising 3.5% annually compared with 0.7% for units. However, both segments softened recently: houses fell 0.7% over the month and 1.5% over the quarter, while units recorded a milder 0.2% monthly fall and 0.8% quarterly decline.

Canberra Property Market Trends

A more selective market is emerging, and buyers appear less pressured to act quickly. Canberra’s median dwelling value sits at $885,254, with houses at $1,035,828 and units at $597,430, keeping affordability firmly in focus for both owner-occupiers and investors.

Rental fundamentals are offering some support, with Canberra’s gross dwelling yield at 4.2%. Units remain more yield-focused at 5.4%, compared with 3.8% for houses. Across local ACT markets, annual growth has varied widely, from 7.5% in Weston Creek to -0.6% in Molonglo, highlighting the importance of suburb-level pricing and buyer demand.

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

Canberra Property Market Forecast

Looking ahead, the most likely direction is further softness or a gradual drift lower rather than a sudden correction. Canberra is already 2.9% below its May 2022 peak, and the latest monthly and quarterly declines suggest momentum has turned negative.

The key pressure points are weaker buyer confidence, affordability constraints, tighter borrowing conditions, and rising advertised stock. At the same time, low new housing supply, population demand, and firm rental conditions should help limit the downside. For sellers, this points to a market where pricing discipline, presentation, and timing will matter more than they did during stronger growth phases.

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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