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

The Canberra property market experienced a modest recovery, with dwelling values rising by 0.2% in February. However, over the past three months, values declined by 0.8%, and annual performance remained negative at -0.9%. Despite the downturn, buyer sentiment appears to be improving, partially due to expectations of lower interest rates.

Canberra Property Price Growth

Canberra’s median dwelling value stood at $846,955, placing it among the higher-priced markets in Australia. However, the city has seen a 7.1% decline from its peak in May 2022, reflecting broader market corrections. Gross rental yields remain low at 1.9%, among the lowest of all capital cities.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 3rd March 2025

Canberra Property Market Trends

• Listings in Canberra have increased by 6.8% above the five-year average, making it a buyer’s market with more choices available.
• The premium segment of Canberra’s market was hit hardest, with the upper quartile down by 9.8% from peak levels.
• The rental market has seen a slight improvement, with unit rents showing some recovery, though Canberra’s rental yield remains one of the weakest.

Within the ACT, Molonglo experienced the highest annual growth at 2.3%, while areas like Gungahlin saw notable declines of -3.2%, highlighting the uneven performance across regions.

Change in dwelling values over key time periods

Canberra Property Market Forecast

• Interest rate cuts could provide some relief, potentially stabilizing prices.
• Lower migration levels may limit demand growth.
• Affordability improvements may attract buyers, particularly in high-end segments that have seen the steepest declines.

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 remains in a weak but stabilizing phase, with mild price rebounds but lingering annual declines. The oversupply of listings gives buyers an advantage, while low rental yields signal continued investor caution. The market’s future trajectory will largely depend on interest rate movements and demand shifts.

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