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

Canberra’s housing market has shown signs of resilience but remains relatively subdued compared to other capital cities. While national growth trends suggest a recovery and convergence across capitals, Canberra continues to tread water, with values struggling to gain strong momentum.

Canberra Property Price Growth

• Monthly change (May 2025): +0.5%
• Quarterly growth: +0.5%
• Annual change: -0.7% (one of only two capital cities with a decline, the other being Melbourne at -1.2%)
• Median dwelling value: $846,054
• From its market peak in May 2022, values have dropped 6.4%, putting it among the few capitals still below peak.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 2nd June 2025

Canberra Property Market Trends

• Canberra is notably unique among capitals in that growth is concentrated in the upper quartile, with weaker performance in the lower market segments.
• Rental market performance has also been soft. Annual rent growth was modest:
  • Houses: +1.1%
  • Units: +1.6%
• Gross rental yields stand at 4.1%, below the national average (3.7%) but above Sydney and Melbourne.
• The ACT recorded the largest decline in dwelling values across SA3 regions in Australia, with:
  • North Canberra: -3.1%
  • Woden Valley: -1.7%
  • Weston Creek: -1.5%
• Other ACT SA3s also showed either marginal declines or modest gains, with none in the top-performing national list.

Change in dwelling values over key time periods

Canberra Property Market Forecast

Looking ahead, expectations for Canberra remain cautious:

• Easing interest rates and improved market confidence post-election may lift national sentiment, but Canberra’s performance may lag unless broader economic and demographic pressures ease.
• Price pressures and limited affordability gains could keep demand muted, especially in mid- and lower-priced segments.

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

While Canberra has not seen a sharp decline, it stands out for its lack of recovery compared to other capitals. The city is navigating a slow growth path, with limited momentum and continued softness in both sales and rental markets. Unless economic and buyer conditions shift meaningfully, Canberra may continue underperforming relative to its peers in the short to medium term.

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