Canberra property market data, trends, forecasts

Canberra property market news - key takeaways

• Price movements show modest growth: Canberra's housing values edged up by +0.7 per cent in September. This is slightly below the combined capitals' average of +0.9 per cent. House values increased by +0.9 per cent, while unit values saw a decrease of -0.2 per cent. These insights come from Cotality's latest figures.
• Supply and demand dynamics: Cotality's analysis highlights a significant gap in the Canberra property market. Unit listings are 15.8 per cent above the five-year average, while house listings are nearly 21 per cent below average. This imbalance could shape future price trends.
• Auction clearance rates moderate: Domain data shows Canberra's auction clearance rate was 58 per cent for the week of October 5, 2025. This indicates moderate buyer interest and market activity.
• Rental market remains tight: Canberra's rental market is under pressure, with advertised weekly rents climbing by +1.0 per cent to $693. The vacancy rate stands at 1.6 per cent, according to SQM Research.
• Favourable financing conditions: A recent 75-basis-point cut to the cash rate has boosted borrowing capacity and consumer sentiment. This is supporting housing activity and affordability in the Canberra property market.

Canberra property price movements

The Canberra property market is seeing some growth, with dwelling values on the rise. However, the unit market is lagging, which is slowing down the overall growth rate in the region.

Canberra property prices - September 2025

In Canberra, property prices have increased. Over the past month, dwelling values rose by +0.7 per cent, leading to a quarterly increase of +1.7 per cent. Annually, the growth is at +2.5 per cent, with the median property value now at $885,942.

^{Source: Cotality}

The Canberra property market continues to show resilience, with steady growth over the past year. The rise in dwelling values reflects a stable market environment, supported by Canberra's strong public sector employment and higher income levels, which typically provide a buffer against volatility.

House prices in Canberra

House prices in Canberra have increased, with a +0.9 per cent rise in the past month. This growth has led to a quarterly increase of +2.2 per cent and an annual rise of +3.4 per cent. The median house price in Canberra now stands at $1,021,334.

^{Source: Cotality}

The Canberra housing market remains strong, with Canberra house prices continuing to climb. Limited supply and strong demand, especially for family homes in desirable suburbs, are driving this upward trend. Canberra house prices are supported by the city's infrastructure projects and stable employment conditions.

Unit prices in Canberra

Unit prices in Canberra have faced challenges, with a decrease of -0.2 per cent over the past month. The quarterly change remained flat at 0.0 per cent, and the annual change showed a decline of -0.3 per cent. The median unit price is currently $600,435.

^{Source: Cotality}

The Canberra unit prices reflect a market struggling with oversupply, as unit listings are above the five-year average. This has created a more competitive environment for sellers, with prices staying relatively stagnant. However, strong rental yields in the unit sector continue to attract investor interest, which could help stabilise prices in the future.

Canberra property market forecasts 2025-26

Australia's big four banks regularly release house price forecasts as part of their economic research. This helps them make informed mortgage-lending decisions, manage risks, and demonstrate their market expertise. Here's what to expect across the country in 2025 and 2026.

<sup>Source: Westpac Housing Pulse, NAB Residential Property Survey, CBA Economic Update, ANZ Housing Outlook. No prediction data for Canberra or Darwin.
* ANZ estimate for Capital Cities, not national</sup>

Canberra's property market predictions indicate a steadier growth compared to some other capital cities. While the national outlook varies, Canberra's growth is expected to remain stable, thanks to its solid economic conditions and a strong public-sector employment base. Expectations for fewer near-term cash rate cuts temper the tailwind from earlier rate reductions for prospective buyers, maintaining steadier borrowing costs.

Canberra home price forecasts 2026

Westpac hasn't provided a specific forecast for Canberra, but NAB anticipates a +2.8 per cent rise in property prices for 2026. ANZ is more conservative, predicting a +1.6 per cent increase. 

These forecasts reflect Canberra's stable economic environment, supported by higher incomes and public-sector jobs. The predictions are shaped by expectations of steady interest rates and a balanced housing supply, which should keep the market stable without major fluctuations.

RBA cash rate forecast 2025-2026

The RBA held the cash rate at 3.60 per cent during its late-September meeting. Attention is now on whether the Board will make another move before the year ends or wait until early 2026. The focus is on the next CPI figures and signs of easing in services inflation and wage growth, amid a tight rental market and strong employment. The four major banks have updated their views, mostly agreeing on "no further 2025 cuts," with one exception:

• CBA: No further move in 2025; a -0.25 percentage point cut in February 2026, bringing the cash rate to 3.35 per cent by early 2026.
• Westpac: Anticipates a -0.25 percentage point cut in November 2025, followed by two more in February and May 2026, lowering the cash rate to 2.85 per cent by mid-2026.
• NAB: No further move in 2025; a -0.25 percentage point cut in May 2026, with the cash rate reaching 3.35 per cent by mid-2026.
• ANZ: No further move in 2025; a -0.25 percentage point cut in February 2026, reducing the cash rate to 3.35 per cent by early 2026.

What this means for the Canberra market

Canberra's higher incomes and stable public-sector employment typically make it less volatile. If the cash rate holds into November, conditions should remain balanced: low distress, moderate buyer interest, and premium-grade family homes leading clearance rates. 

If the next move is delayed until early 2026 (as per CBA/ANZ's base case), expect a stronger autumn 2026 as borrowing capacity increases. Apartments remain price-sensitive with reduced investor activity, while houses in school-adjacent suburbs should continue to rise. Cotality ranks Canberra in the middle of the pack based on recent momentum.

Canberra house prices graphs and charts

Canberra's house price growth over the last 5 years has seen its ups and downs. As of September 2025, house prices in Canberra rose by +0.7 per cent for the month, +1.7 per cent over the quarter, and +2.5 per cent over the past year. However, they are still -4.0 per cent below the peak in May 2022.

The five-year chart shows Canberra enjoyed strong growth in 2020–2021, but prices dipped in 2022 as interest rates climbed. Since 2023, the market has stabilised, with quarterly growth staying close to zero(Historically, Canberra’s property environment is known for its consistency, partially due to strong support from its public sector).

Canberra property price growth over the last 10 years

Recent trends in Canberra's housing market mirror past cycles. Canberra property prices growth over the last 10 years has been marked by periods of rapid increases followed by corrections. During the pandemic, prices surged, peaking in 2022 before rate hikes triggered a downturn.

Over the last three decades, Canberra's property market has generally moved upward, influenced by low interest rates, stable public sector jobs, and a consistent housing shortage. Today, homeowners are cautiously optimistic, encouraged by easing interest rates and a strong local economy. Nonetheless, the market remains sensitive to economic changes, with both buyers and sellers prioritising long-term value over short-term gains.

Canberra selling statistics

Canberra's property market in October 2025 is showing some interesting changes. Sales activity is on the rise, and the time properties spend on the market is shifting, indicating evolving dynamics between buyers and sellers.

Canberra sales volume and days on market

In October 2025, Canberra saw a notable +12.0 per cent increase in sales volume compared to the previous year. Properties spent a median of 44 days on the market, down slightly from 46 days last year.

This rise in sales volume points to strong demand in the Canberra market, possibly due to favourable economic conditions or local factors drawing in buyers. The slight decrease in days on market suggests properties are selling a bit quicker, which could mean increased buyer confidence or more competitive pricing by sellers. Compared to other capitals, Canberra's market is more active, showing improved sales efficiency.

Canberra new and total listings

Canberra has experienced a drop in new and total listings, with new listings down by -9.8 per cent and total listings down by -11.5 per cent from the previous year.

This reduction in listings indicates a tightening supply in the Canberra market. This could lead to more competition among buyers, potentially driving up prices if demand stays strong. The decrease might also reflect sellers holding off on listing their properties, hoping for better conditions or higher prices soon.

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}

The vendor discount in Canberra for the three months to September 2025 was -3.3 per cent, slightly tighter than the national average of -3.2 per cent. This suggests sellers in Canberra are conceding less on their asking prices, indicating a relatively strong market where buyers have less room to negotiate. Compared to other capitals, Canberra's vendor discount is moderate, reflecting a balanced market where neither buyers nor sellers have overwhelming leverage.

Canberra auction clearance rates

^{Source: Domain}

Auction clearance rates in Canberra have remained stable over the past four weeks, showing consistent buyer interest and effective sales at auction. This steadiness suggests that despite changes in listings and sales volumes, the market remains resilient with a healthy level of buyer engagement. The auction results reinforce the idea that Canberra's property market is maintaining a steady pace, with properties continuing to attract competitive bids.

Canberra property investing

Canberra’s rental market is currently finding its footing, with rental rates seeing a moderate increase over the past year. This mirrors a broader national trend where rental growth has slowed from previous highs but remains a key consideration for both tenants and investors. Below, we delve into the statistics on rental rates, yields, and vacancy trends to offer a comprehensive view of Canberra’s market conditions.

Canberra rental market

Rental rates in Canberra have risen by +2.8 per cent from September 2024 to September 2025. This aligns with the national trend of increasing rental rates, albeit at a slower pace than in previous years. Gross rental yields in Canberra are steady at 4.0 per cent, which is comparable to other capital cities.

^{Source: Cotality}

Despite the moderate rise in rental rates, Canberra’s rental market is supported by steady demand. The rental yield of 4.0 per cent indicates a balance between rental income and property values. However, the slight increase in rental rates points to ongoing demand pressures, likely driven by limited new supply and consistent tenant interest.

Canberra vacancy rates

Vacancy rates are essential for understanding the balance between rental supply and demand, offering insights into how easily tenants can find properties and negotiate rents. 

Nationally, vacancy rates have remained low, indicating a tight rental market across most capitals. In September 2025, Canberra’s vacancy rate was 1.6 per cent, reflecting a stable yet slightly tighter market compared to the previous year.

^{Source: SQM Research}

Canberra’s vacancy rate of 1.6 per cent in September 2025 is down from 2.0 per cent the previous year, highlighting a tightening rental market. This reduction in vacancies suggests that while the market is not as tight as other capitals, it still favours landlords. 

Compared to the national average, Canberra’s vacancy rate is slightly higher, indicating a relatively balanced market. However, ongoing demand and limited supply could lead to further tightening if new stock does not enter the market.

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. Sydney and Brisbane continue to see strong tenant demand, while Hobart remains at near record-low vacancy levels. Rents are still rising in most capitals, particularly for houses, despite a slight easing in rental growth rates compared to last year. Overall, we are still seeing an undersupplied rental market, although conditions appear to be stabilising in some cities such as Melbourne and Canberra.”

Canberra’s vacancy rate climbed to 1.6 per cent in September 2025, with vacancies at 970 properties—a slight seasonal rise that fits the idea of a stabilising national picture rather than a structural loosening. Combined rents fell -0.9 per cent over the month yet remain +1.2 per cent higher than a year ago, reflecting affordability constraints and turnover. If spring demand firms and supply doesn’t rise further, rents are likely to stabilise rather than retreat.

Highest growth areas in Canberra

^{Source: Cotality}

Highlights for Canberra’s high growth areas

• Molonglo is leading the growth chart, ranking #1 in September 2025 with an impressive annual growth of 8.7 per cent and a median house price of $738,721. The area's growth is driven by a population influx and improved transport infrastructure.
• South Canberra takes the #2 spot in September 2025, showing a solid annual growth of 4.3 per cent, with a median house value of $1,088,862. Its prime location and better CBD access via light rail are likely boosting demand, appealing to both professionals and renters.
• Belconnen holds the #3 position in September 2025, with a 3.5 per cent annual increase and a median price of $857,943. The area's stable job market, road links, and educational facilities continue to attract interest. (Suburbs to watch: Dunlop)
• Tuggeranong remains strong at #4 in September 2025, with a 3.1 per cent annual growth, reaching a median value of $863,373. It is a favourite for families and key workers, thanks to improved transport solutions and community amenities. (Suburbs to watch: Monash)
• Weston Creek, ranking #5 in September 2025, sees a 2.9 per cent gain to a median price of $971,418. The area is attracting upgraders and active families with its improved transport infrastructure and local amenities.