The Canberra Property Market Explained: A Broker’s Perspective

If you’re wondering what’s really going on with the Canberra property market, there’s plenty to unpack. Property prices have shifted, interest rates remain a hot topic, and the broader economic outlook has created some hesitation for buyers and investors alike. As mortgage professionals who regularly help clients in the ACT, we’ve got a practical view of what’s happening now – and what to consider if you’re planning your next move.

Canberra Property Market Forecast 2025

Recent data from CoreLogic’s April 2025 Home Value Index reveals a nuanced picture. Here’s a quick snapshot of key indicators for Canberra:

Canberra Property Market Snapshot – March 2025 (CoreLogic)

Metric	Value
Monthly growth	+0.2%
Quarterly change	-0.1%
Annual change	-0.5%
Distance from peak (May ‘22)	-6.8%
Median dwelling value	$854,398
Gross rental yield	1.6% (lowest of all capitals)

Data correct as of May 20, 2025.

While these figures don’t suggest a boom, they reflect a stabilising trend—likely supported by improved buyer sentiment after the February rate cut.

The Canberra property market forecast 2025 points to slow and steady growth. Unlike the boom periods we’ve seen in other capital cities, Canberra’s market tends to move at a more moderate pace. That’s partly because demand here is largely driven by government employment, defence, and education sectors. These industries bring a level of stability that helps cushion the local market from extreme price swings.

What’s Driving Demand in Canberra?

Affordability and lifestyle remain key drawcards. While Canberra isn’t the cheapest market in Australia, it still offers strong value for government employees and families looking for space, safety, and good schools. First home buyers are showing renewed interest, especially with recent government incentives aimed at supporting new builds and improving housing affordability.

We’re also seeing more clients relocate from Sydney and Melbourne, drawn by the balance Canberra offers. The city’s layout, public transport upgrades, and walkable neighbourhoods add to the appeal. Mortgage brokers in Canberra, like us, are increasingly helping remote workers who want the best of both worlds – capital city access without big city stress.

Trends to Watch in the Canberra Property Market

While Canberra’s value growth remains soft, signs of renewed momentum exist. With affordability still stretched nationally, local buyers focus more on value, sustainability, and location.

• Increased competition for townhouses: As freestanding house prices remain high, buyers are shifting towards townhouses and duplexes in key areas like Gungahlin, Belconnen and Woden.
• Sustainability matters: Energy-efficient features and solar upgrades are no longer just nice-to-haves. Buyers and renters alike are looking for long-term cost savings and greener living.
• Rental demand is holding strong: Despite Canberra’s gross rental yield being the lowest of all capitals at 1.6%, vacancy rates remain low. Inner-city and northside suburbs continue to attract long-term tenants, particularly those working in government.
• New builds remain in focus: Ongoing ACT Government incentives are creating opportunities for buyers and builders, though delays in approvals and supply issues are still part of the equation.

What This Means for Buyers in 2025

If you’re a first home buyer, the combination of grants, shared equity programs, and flexible lending options makes now a good time to explore your options. Canberra’s steady market offers a relatively low-risk environment to enter the property ladder. Working with experienced mortgage professionals can help you figure out what you’re eligible for and how to structure your loan for future-proof affordability.

Upsizers and investors are targeting homes with the long-term benefits of renovated property: improved energy use, fewer maintenance surprises, and broader appeal to tenants. While yields may be tighter than in some regions, Canberra’s consistent demand and economic stability support strong long-term returns.

And for downsizers, the shift towards low-maintenance living is creating fresh demand for villas and townhouses. Many are using this moment to sell larger homes and reinvest in newer, more efficient properties with cash left over.

A Local Broker’s Perspective

As mortgage brokers in Canberra, we’ve noticed a few common themes in recent months. Buyers want certainty. They want to know what repayments will look like, how different loan structures could affect them long term, and whether now is a smart time to act.

We always recommend starting with a conversation. Even if you’re six months away from applying, speaking with a broker early gives you clarity. You can learn how much you can borrow, what kind of property is realistic for your budget, and how interest rate changes might impact your strategy.

Brokers also help remove the guesswork. We work with a wide range of lenders and take the time to explain everything in plain English, from application steps to loan types and conditions. That’s a big relief when you’re navigating changing conditions and trying to make confident choices.

Why Canberra’s Market Stability Might Be a Good Thing

The Canberra property market isn’t spiking, and that’s okay. Stability means fewer surprises and more confidence for buyers thinking long term. The Canberra property market forecast 2025 points to a steady outlook, especially for those open to newer builds, energy-efficient homes, and well-connected suburbs.

Whatever your situation, working with mortgage professionals who understand the local market makes the journey much easier. If you’re ready to explore your options, get in touch and let’s see what’s possible.