Thinking about buying an investment property in Canberra in 2026?

Like other smaller capitals, Canberra’s price growth has been steady rather than explosive in recent years, but that doesn’t mean the opportunities have dried up. Tight rental supply, consistent tenant demand and stable local employment continue to support the market, especially for investors taking a longer‑term view.

Here we'll cover how the Canberra property market performed in 2025, what leading economists expect for 2026, and a selection of suburbs that stand out for long‑term growth potential.

What did the property market in Canberra look like in 2025?

The Canberra property market recorded steady, moderate gains in 2025, with dwelling values rising by +3.2 per cent in the 12 months to October 2025. This performance was solid but notably softer than the national average of +6.1 per cent, as the city moved into a phase of relative stability following previous volatility. The market was supported by high local incomes and stable public sector employment, even as population growth moderated slightly compared to other states.

Houses drove the majority of capital growth, increasing by +4.2 per cent to reach a median value of $1.02 million. Conversely, the unit market remained flat with 0.0 per cent growth and a median value of $590,000, reflecting a market where supply was sufficient to meet buyer demand without pushing prices higher. This divergence highlighted a clear preference among buyers for detached land, while the unit sector absorbed a significant volume of new stock.

A distinguishing feature of the year was the shift toward a housing surplus, which gave buyers more choice and negotiating power than in other capital cities. High completion rates for new developments dampened the urgency often seen in tighter markets, resulting in a balanced environment where vendors had to be realistic about pricing to secure a sale.

Conditions for investors shifted as the rental market softened, with vacancy rates drifting higher to hover around 1.5 per cent. While gross rental yields held at 4.0 per cent, the abundance of stock meant tenants had more options, easing the upward pressure on rents that had characterised previous years. Louis Christopher, Managing Director at SQM Research, pointed to construction numbers to explain this dynamic, noting, "My estimate is that 6,200 persons translated into additional demand for some 2,480 dwellings... Over the same time 3,900 dwellings were completed. So, a surplus."

Canberra property market forecast 2026

National property values are projected to reach new record highs in 2026 as interest rate cuts reignite buyer demand, and Canberra is set to join the recovery with steady, moderate gains. Domain predicts house prices will rise between +3 and +5 per cent, pushing the median value to a new record of roughly $1.18 million. While the capital may not see the explosive growth predicted for Perth or Brisbane, the consensus is that the market has stabilised and is moving upward.

SQM Research forecasts a similar growth range of +3 to +6 per cent, though it notes that conditions will vary depending on property type. KPMG offers a slightly stronger outlook for the apartment sector, projecting unit growth of +5.6 per cent compared to +4.8 per cent for houses. This suggests that while the top end of the market remains steady, buyers are actively seeking value in more affordable segments.

A key driver for the year ahead is the expanded First Home Guarantee Scheme, which now has a price cap of $1 million. This is fueling demand for entry-level detached homes at a time when stock is becoming harder to find. NAB reports that house listings have tightened significantly—down nearly 19 per cent year-on-year—which is putting a solid floor under prices even as new apartment completions keep the broader supply pipeline flowing.

Louis Christopher, Managing Director of SQM Research, highlights the nuanced nature of the recovery, stating, “I would suggest that it is going to be a mixed market in Canberra over 2026 with a price forecast of 3 to 6 per cent.” Overall, Canberra property market predictions point to a year of reliable stability, supported by public sector employment security and returning buyer confidence.

What are the best suburbs to invest in Canberra 2026?

We've put together a list of ten of Canberra's top investment suburbs for 2026 according to OpenAgent analysis of short-term and long-term growth patterns, listing activity, selling speed and rental yields. 

Nicholls, ACT 2913

Nicholls is a premium suburb in the Gungahlin region with a median house price of $1,225,000. It has seen strong annual growth of +11.4 per cent, reinforcing its status as a desirable location for established families. The suburb is known for its golf course, the Gold Creek Village precinct, and spacious homes, which drive consistent demand. With a median weekly rent of $765, it offers a steady income stream alongside its capital growth potential. Its established feel and lack of new land releases help maintain property values.

Calwell, ACT 2905

Calwell offers excellent value in the Tuggeranong valley with a median house price of $887,500. It has outperformed many neighbours with +11.6 per cent growth over the last year and a solid rental yield of 4.2 per cent. The suburb is popular for its elevated position, offering views towards the Brindabellas, and its easy access to the Monaro Highway for commuters. With a median rent of $680 per week, it attracts families seeking space and affordability. For investors, the combination of double-digit growth and healthy yields makes it a standout performer.

Bonner, ACT 2914

Bonner is a modern family suburb in Gungahlin with a median house price of $970,000. It recorded +10.9 per cent growth in the past 12 months, supported by its proximity to the Mulligans Flat Nature Reserve. The area appeals to younger families and renters due to its contemporary housing stock and local school access. Investors benefit from a median weekly rent of $660 and a yield of 3.9 per cent. Its position on the northern fringe offers a quiet lifestyle while remaining connected to the Gungahlin Town Centre.

Conder, ACT 2906

Conder is the commercial heart of the Lanyon Valley, offering a median house price of $960,000. While annual growth was steady at +6.7 per cent, the suburb has delivered an impressive +51.2 per cent increase over five years. It is anchored by the Lanyon Marketplace, providing residents with immediate access to supermarkets and services. The scenic backdrop of the surrounding hills and consistent family demand support a median rent of $638 per week. It remains a reliable choice for investors seeking established infrastructure in the south.

Casey, ACT 2913

Casey is a highly sought-after suburb in Gungahlin with a median house price of $965,000. It grew by +9.7 per cent over the last year, driven largely by the popularity of the Casey Market Town precinct. The suburb features modern homes and a vibrant village atmosphere that appeals to young professionals and families. With a median rent of $650 per week, it maintains a low vacancy risk due to its strong local amenities. Its convenient location near major arterial roads ensures easy access to the rest of Canberra.

Crace, ACT 2911

Crace is widely considered one of Gungahlin’s premier suburbs, commanding a median house price of $1,145,750. It achieved +10.6 per cent annual growth, reflecting the high demand for its master-planned streetscapes and central location. The suburb is famous for its lively local shops and easy access to the Barton Highway for city commuters. Although the yield is tighter at 2.9 per cent, the median rent of $665 highlights the quality of tenants it attracts. It is a top pick for investors prioritising capital growth and lifestyle appeal.

Palmerston, ACT 2913

Palmerston offers an established entry point into the Gungahlin region with a median house price of $1,000,000. It has seen massive five-year growth of +57.4 per cent, proving its long-term value despite a flatter 12-month performance of +1.0 per cent. The suburb is well-positioned near Gungahlin Drive, offering one of the fastest commutes to the CBD from the north. With a median rent of $620 per week, it remains popular with tenants who value convenience and mature gardens. Its central location ensures it stays competitive against newer neighbouring suburbs.

O'Connor, ACT 2602

O'Connor is a leafy Inner North suburb where the unit market has surged, recording a median price of $651,000. Prices jumped +22.8 per cent in the last year, driven by professionals and students needing access to the ANU and Civic. The suburb offers a vibrant lifestyle with its famous local shops and bike paths connecting directly to the city. Investors benefit from a solid rental yield of 4.2 per cent and a median weekly rent of $525. It represents a high-growth opportunity in one of Canberra’s most prestigious locations.

Flynn, ACT 2615

Flynn is a quiet achiever in the Belconnen district with a median house price of $927,500. It recorded +9.1 per cent growth over the past year, appealing to buyers seeking larger blocks and established greenery. The suburb is well-connected to the Belconnen Town Centre while maintaining a peaceful, family-friendly atmosphere. With a median rent of $645 per week and a yield of 3.8 per cent, it offers a balanced return for investors. Its reputation for spacious housing continues to draw long-term tenants.

Chisholm, ACT 2905

Chisholm offers affordability and convenience in Tuggeranong with a median house price of $874,000. The market has risen +9.3 per cent in the last 12 months, supported by a strong rental yield of 4.1 per cent. The suburb is centred around a busy local shopping precinct and offers quick access to the Monaro Highway. With a median weekly rent of $650, it is a practical choice for families and essential workers. For investors, Chisholm provides a reliable entry point with consistent demand.

Disclaimer: Rankings use OpenAgent’s internal weighted scoring of price growth, days on market, listings and indicative yield. General information only—not financial advice; figures are estimates; past performance is not reliable. Always seek independent advice.