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

Canberra’s property market is showing signs of a gentle resurgence. While it’s not leading the national growth race, it’s carving out a niche of steady progress and long-term appeal. The city’s housing values are slowly lifting from their previous downturn, supported by growing interest in affordable suburbs and a stable investment outlook. Here’s a snapshot of where things stand:

Market Highlights

• Canberra’s housing market is showing modest recovery, with dwelling values up 0.8% in Q2 and 2.4% annually—a slower pace compared to other capitals. Values remain 5.7% below the March 2022 peak, reflecting a gradual rebound.
• The median dwelling value sits at $842,402, placing Canberra behind only Sydney and Brisbane in price. Growth has been led by more affordable regions like Weston Creek (6.0%) and Tuggeranong (4.9%).
• Rental growth is subdued, with gross yields at 3.9%, offering reasonable but unremarkable returns. Buyer interest is centered in outer suburbs where value is more accessible.
• With falling interest rates and steady supply, Canberra is expected to see continued mild gains through 2025. While it lacks the pace of faster-growing cities, it offers stability and low volatility—appealing to long-term buyers and investors seeking steady performance over hype.

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

Canberra posted a 0.8% increase in dwelling values over the June quarter, with a more modest 0.2% growth in June. On an annual basis, values are up 2.4%, reflecting a gentle recovery after prior declines.

The city’s housing market peaked in March 2022, and despite recent gains, dwelling values remain 5.7% below that peak, indicating a slow path to full recovery.

Top-performing regions include Weston Creek with 6.0% annual growth, and Tuggeranong at 4.9%, showing that more affordable or suburban areas are seeing stronger demand.

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 July 2025

Canberra Property Market Trends

Several local trends are shaping Canberra’s housing landscape:

• Rental growth has stabilised, with house rents rising just 2.3% and unit rents by 2.9% over the past year—among the slowest in the country.
• Gross rental yields are at 3.9%, providing a decent return but not enough to make it a standout for investors.
• Supply remains relatively steady, with no severe undersupply or excess, helping to balance out price pressure.

Buyer activity remains concentrated in outer suburbs where affordability is more favourable, particularly among first-home buyers and upgraders.

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

Canberra Property Market Forecast

Looking forward, Canberra is expected to experience mild but sustained growth:

• Falling interest rates, alongside inflation easing to 2.4%, should support greater buyer participation in the second half of 2025.
• The city’s housing pipeline is moderate, avoiding both under- and over-supply risks.
• Investor interest is likely to remain subdued compared to other capitals due to modest rental growth and lower yields.

Unless macroeconomic conditions shift significantly, Canberra will likely remain a stable but unspectacular performer, with prices inching upward through 2025 and into 2026.

• 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

Canberra’s market is characterised by balance—between buyers and sellers, supply and demand, and growth and affordability. While it lacks the heat of Perth or Brisbane, it also avoids the volatility.

For those seeking steady performance in a relatively low-risk environment, Canberra continues to offer consistency. Modest capital gains and reasonable rental returns make it a viable long-term hold, particularly in outer-ring suburbs where value remains accessible.

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