Canberra property market data, trends, forecasts

Canberra property market news - key takeaways

• Price movements: Cotality’s latest figures reveal that Canberra's house values climbed by +0.6 per cent in October, while unit values saw a modest rise of +0.1 per cent. Over the past year, house values have grown by 4.2 per cent, whereas unit values have remained stable.
• Supply/demand dynamics: Insights from Cotality highlight a supply-demand imbalance in the Canberra property market. House listings are 21.4 per cent below the five-year average, while unit listings are 14.4 per cent above the average. This contributes to the varied performance between houses and units.
• Selling market: Domain reports that Canberra's auction clearance rate was 61 per cent for the week of November 2, 2025, indicating a moderate level of buyer interest and competition.
• Rental market: According to Cotality data, Canberra's weekly rents increased by 1.0 per cent over the past month to $693. With a vacancy rate of 1.4 per cent, as reported by SQM, the rental market remains relatively tight.
• Financing conditions: The Reserve Bank of Australia (RBA) has kept the cash rate steady at 3.60 per cent as of November 2025. This decision comes amidst rising inflation and cost-of-living pressures, reflecting a cautious approach to balancing inflation control with economic recovery.

Canberra property price movements

The Canberra property market is seeing steady growth. House values are on the rise, while unit values are holding steady. This reflects the market's varied nature: limited housing supply is pushing house prices up, whereas an ample supply of units is keeping their prices stable.

Canberra property prices - October 2025

In October 2025, Canberra's property values continued their upward trend. The median value for all properties climbed by +0.6 per cent over the month, leading to a quarterly increase of +1.7 per cent. Over the past year, property values have grown by +3.2 per cent, with the median value reaching $877,937.

^{Source: Cotality}

Canberra's property market has a history of resilience, showing consistent growth patterns. Recent data suggests this trend is ongoing, driven by low supply and stable demand. This growth mirrors the national trend of rising housing values due to supply constraints.

House prices in Canberra

House prices in Canberra continue to rise, with a +0.7 per cent increase in October 2025. This represents a quarterly rise of +2.3 per cent, and over the past year, house values have grown by +4.2 per cent. The median house price is now $1,024,403.

^{Source: Cotality}

The Canberra housing market benefits from a lower supply of houses, which is 21.4 per cent below the average, pushing house prices higher. This scarcity, coupled with steady demand, supports ongoing value growth. The Canberra housing market is known for its steady growth, avoiding sharp fluctuations.

Unit prices in Canberra

Unit prices in Canberra have remained stable, with a slight +0.1 per cent increase over the past month. However, on a quarterly basis, unit values have decreased by -0.4 per cent, with no change over the past year. The median unit price is currently $590,906.

^{Source: Cotality}

The Canberra unit prices are affected by a higher supply level, with listings 14.4 per cent above the five-year average. This abundance of supply has kept unit values relatively flat, contrasting with the more constrained housing market. Despite these conditions, the Canberra unit market remains stable, supported by consistent demand.

Canberra property market forecasts 2026

Australia’s big four banks regularly release house price forecasts to guide mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here's what they anticipate for 2026 across the country.

<sup>Source: Westpac Housing Pulse, NAB Residential Property Survey, CBA Economic Update, ANZ Housing Outlook. 
* ANZ estimate for Capital Cities, not national</sup>

Canberra is expected to see slower growth compared to other major Australian cities. These Canberra property market predictions suggest a steady, albeit slower, pace of price increases. This reflects the city's unique market dynamics and the influence of public sector employment.

Canberra home price forecasts 2026

Forecasts for Canberra indicate a moderate rise in home prices. NAB predicts an increase of about +2.8 per cent, while ANZ expects a smaller rise of +1.6 per cent. These projections are influenced by Canberra's stable demand from public sector workers and higher-income households, alongside a consistent supply of housing. 

The Reserve Bank of Australia's (RBA) decision to maintain the cash rate at 3.60 per cent provides a stable environment for these forecasts, helping to sustain buyer confidence without significantly raising borrowing costs.

RBA cash rate forecast 2025-2026

The RBA held its cash rate steady at 3.60 per cent on 5 November 2025, following three 0.25-per-cent cuts earlier in the year. This decision came as inflation showed an unexpected rise, with the RBA’s preferred trimmed-mean measure reaching 3.0 per cent, the upper limit of its 2–3 per cent target band, and headline CPI running at 3.5 per cent annually. This left no room for another rate cut in 2025. Initially, major bank economists anticipated a November cut, but revised their expectations when higher inflation figures emerged, correctly predicting the RBA would hold the rate.

Here’s where the major banks see the cash rate heading next:

• Commonwealth Bank (CBA): Expects no further cash rate cuts in this cycle, maintaining the rate at 3.60 per cent into 2026.
• Westpac: Also predicts no cuts for the rest of 2025, but forecasts a 0.25-per-cent cut in May 2026 and another in August 2026, reducing the cash rate to 3.10 per cent by late next year.
• National Australia Bank (NAB): Anticipates no additional cuts in 2025, with one 25-basis-point cut in May 2026, lowering the cash rate to 3.35 per cent by mid-2026.
• ANZ: Similarly expects no more cuts in 2025, with the next move being a 0.25-per-cent cut in February 2026, taking the cash rate to 3.35 per cent at the start of 2026.

What this means for the Canberra market

Canberra is experiencing gains of just over +3 per cent year-on-year after a slow 2024. The rate hold has instilled confidence in a market dominated by public sector buyers and higher-income households. While still trading slightly below its peak, buyer demand is returning, and the pause offers a sense of stability. Canberra rarely experiences dramatic shifts due to rate changes alone, but steady policy supports its gradual growth path.

Canberra house prices graphs and charts

Canberra's house price growth over the last 5 years has seen its share of ups and downs. As of November 2025, dwelling values increased by +0.6 per cent for the month, +1.7 per cent for the quarter, and are +3.2 per cent higher than a year ago. However, they are still about -3.5 per cent below their peak in May 2022.

The five-year chart highlights a sharp rise during the COVID era, followed by a prolonged correction starting in 2022. Since then, rolling quarterly growth has been nearly flat, with recent data showing no significant recovery in momentum.

Before this slowdown, Canberra's property growth over the last ten years was quite dramatic. Prices surged by 55 per cent during the COVID boom, climbing from $720,000 to over $1.1 million by the end of 2021. This was fuelled by record-low interest rates and a demand for larger homes. However, the market then faced steep rate hikes, builder collapses, and tighter borrowing conditions, reshaping how buyers and sellers approach the market. Today, the focus is more on long-term value rather than quick gains.

This kind of stop-start cycle is typical for Canberra. The market tends to pause rather than crash, influenced by public-sector hiring, land supply constraints, and tight rental conditions. While prices are still below their peak, there are early signs of stabilisation.

Canberra selling statistics

Canberra's property market in November 2025 is buzzing with activity, reflecting shifts in both buyer and seller behaviour. This mirrors broader national trends, indicating a dynamic landscape.

Canberra sales volume and days on market

Sales volume in Canberra has jumped by +10.7 per cent compared to last year. Properties are now spending a median of 39 days on the market, a decrease from the previous year, showing quicker turnover.

This uptick in sales volume points to strong demand in the Canberra market, aligning with the national trend of increased sales activity. The reduction in days on market underscores a competitive environment where properties are being snapped up faster. While Canberra's market is moving at a moderate pace, cities like Brisbane are seeing even quicker sales.

Canberra new and total listings

New listings in Canberra have risen by +2.0 per cent from last year, while total listings have dropped by -9.1 per cent. This indicates that although more properties are entering the market, they are being quickly absorbed, reducing overall stock.

The decline in total listings, despite more new listings, highlights strong buyer demand, consistent with the national trend of low stock levels. This situation pressures buyers to act swiftly, as available properties are not lingering on the market.

Canberra vendor discount and auction clearance rates

Vendor discounting and auction clearance rates are key indicators of market health. Vendor discounting shows the negotiation power buyers have, while auction clearance rates reveal how effectively properties are sold at auction. Together, these metrics offer insight into the market's supply and demand balance.

Canberra vendor discount over time

^{Source: Cotality}

In Canberra, the vendor discount rate has fallen to 3.3 per cent, showing sellers are conceding less on their asking prices. This aligns with national trends where vendor discounts have generally decreased due to heightened buyer activity and limited stock.

Canberra auction clearance rates

^{Source: Domain}

Auction clearance rates in Canberra have remained steady, around 61 per cent in November. This stability suggests a balanced market where demand meets supply, though not as aggressively as in cities like Sydney or Melbourne, where clearance rates are typically higher. The consistent clearance rates indicate a steady level of buyer interest, maintaining a competitive auction environment.

Canberra property investing

Canberra's rental market is currently stabilising, with recent data showing a balance between demand and supply. While the market is still tighter than ideal, there are signs of easing pressure, creating a more stable environment for both tenants and landlords. Let's delve into the statistics on rental rates, yields, and vacancy trends to understand the current dynamics in Canberra.

Canberra rental market

Rental rates in Canberra have increased over the past year, reflecting steady demand for housing. Gross rental yields have stayed stable, indicating that rental returns are keeping pace with property values. These trends provide context for the detailed metrics below.

^{Source: Cotality}

Despite the increase in rental rates, Canberra's market is still marked by a tight supply, with vacancy rates below the balanced range. This suggests that while rent growth is easing, the market still favours landlords. The recent stabilisation in vacancy rates indicates a market that is not worsening but remains competitive for tenants.

Canberra vacancy rates

Vacancy rates are key indicators of the rental market's health, showing the balance between supply and demand. Nationally, vacancy rates have slightly increased, suggesting a modest easing of rental pressure. 

However, most capitals, including Canberra, remain historically tight. This means tenants may still struggle to find available properties, although the situation is stabilising.

^{Source: SQM Research}

Canberra's vacancy rate has recently eased to 1.4 per cent, down from 1.6 per cent a month earlier, showing a slight improvement in rental property availability. This decline in vacancies suggests the market is absorbing the earlier surge in listings, leading to a tighter rental environment. Compared to other cities, Canberra's vacancy rate remains below the balanced range, indicating that while conditions are stabilising, the market is still competitive for tenants.

Louis Christopher, Managing Director of SQM Research said in his latest rental market report

"The national vacancy rate holding at 1.2% suggests the rental market remains very tight, with little sign of meaningful supply increases. While some capitals are showing temporary easing in rent growth, underlying conditions remain undersupplied, particularly in cities such as Perth, Adelaide, and Hobart. Brisbane continues to attract strong demand from interstate migration, while Melbourne and Canberra appear to be stabilising following recent surges in new rental listings. Overall, we expect rental conditions to remain tight through the summer months, with only a modest increase in vacancies likely in early 2026."

Canberra’s vacancy rate edged down to 1.5 per cent, aligning with Louis’s view that vacancies are “steady” overall but still below balance. Rents fell 2.3 per cent over the month yet remain 4.2 per cent higher year-on-year, illustrating his point that rents can stay elevated even when short-term declines occur. At 1.5 per cent, the capital is nearing balance but not quite there, so tenant conditions have improved only slightly. Without sustained new supply, any rent relief may be short-lived once demand rebounds with spring turnover.

Highest growth areas in Canberra

^{Source: Cotality}

Highlights for Canberra’s high growth areas

• Molonglo is leading the charge in Canberra, securing the top spot in October 2025. With a median value of $734,354, it has seen an annual growth of +6.8 per cent. This growth is likely fuelled by new residential projects and infrastructure upgrades.
• Tuggeranong follows closely, ranking second with a median value of $881,042 and an annual growth of +4.7 per cent. Its consistent top-three ranking over the past six months is due to its family-friendly environment and proximity to amenities. (Suburbs to watch: Monash)
• Weston Creek and South Canberra are also experiencing significant growth. Weston Creek holds the third position with a median value of $973,201 and an annual growth of +4.4 per cent, while South Canberra is fourth with a median value of $1,131,815 and a growth rate of +4.3 per cent. Both areas benefit from well-established infrastructure and attractive living conditions.
• Belconnen and Gungahlin are consistently in the rankings. Belconnen is fifth with a median value of $851,872 and a growth of +3.6 per cent. Gungahlin follows at sixth with a median value of $892,137 and a growth of +2.1 per cent. These areas are popular among young professionals and families. (Suburbs to watch: Dunlop)
• Woden Valley and North Canberra show steady growth, with Woden Valley in seventh place and North Canberra in eighth. Their median values are $898,081 and $724,193, respectively, with growth rates of +1.8 per cent and +0.9 per cent. These areas are known for their accessibility and diverse housing options.