Canberra property market data, trends, forecasts

Canberra property market news

The Canberra property market has experienced a mixed trajectory in the years since the pandemic. After a period of strong growth during the 2021 boom that saw prices soar by more than +38 per cent, the market saw more subdued conditions as interest rate hikes from 2022 onwards impacted buyer sentiment and affordability. 

More recently, prices have plateaued according to CoreLogic data, bringing only marginal growth to the nation's capital. 

Canberra property prices - September 2024

The effects of higher interest rates and poor affordability have led to a softening of buyer activity and a slower overall pace of the Canberra housing market. New listings for September 2024 are down by -30.0 per cent year-on-year, and total listings have fallen by -12.2 per cent, demonstrating hesitance from sellers. Despite this, sales volumes have seen a modest increase of +4.8 per cent compared to 12 months ago.

With median Days on Market (DOM) now at 45 days, up from 41 days last year, it suggests that while buyer activity has picked up slightly, reduced stock levels are keeping the market balanced but slow-moving.

Canberra house prices

Despite conditions easing since the interest rate hiking cycle began in 2022, Canberra house prices remain the third-most expensive out of Australia's capital cities, with a median price of over $965,000. 

Canberra house prices - September 2024

The Canberra median house price dropped a minor -0.2 per cent over September, culminating in a -0.7 per cent decline for the quarter. Despite these short-term decreases, the market shows a level of resilience with positive annual growth of +1.7 per cent.

Canberra unit prices

Canberra's unit market has underperformed compared to houses, slipping into negative territory throughout 2024. 

Canberra unit prices - September 2024

The median unit price in Canberra dipped by -0.3 per cent in September to bring quarterly movements to -1.4 per cent. Over the past 12 months, unit values have declined by -2.6 per cent, bringing the current median price to just under $585,000.

Canberra property market forecast 2024-25

With Canberra property prices still sitting more than +35 per cent above pre-pandemic levels, homeowners have enjoyed very strong growth in recent years. But with the market cooling off in the face of high interest rates and poor affordability, can Canberra real estate get another boost? 

KPMG's latest Residential Property Market Outlook report does predict growth to return to the ACT over the next 12 months and beyond, with houses expected to outperform units. 

KPMG's Canberra property price forecast 2024-25

Whether or not this growth can be achieved still largely depends on the supply and demand dynamic over the coming months. High interest rates had extensive impacts on the market and, while there is now a period of stability, the high rate environment is still causing stress for buyers and homeowners alike. 

Currently, the RBA sits at 4.35 per cent, a long way up from the emergency-level 0.1 per cent rate borrowers were enjoying until May 2022. The banks mostly expect there will be no further hikes, with rate cuts to begin in the later stages of 2024 or early in 2025.

Big four banks' cash rate forecast 2024-25

Canberra house price graphs and charts

The latest Canberra property price graph from CoreLogic's monthly chart pack clearly shows the historic high of the 2021 boom followed by the interest rate-driven decline of 2022 and subsequent levelling off in 2023 and 2024.

Canberra property info for sellers

Selling data for Canberra property looks on the surface to be particularly strong as listings remain persistently low and sales increase. However, Days on Market (DOM) remains relatively high and prices have stabilised. Overall, Canberra looks to be in a balanced phase of the market.

Property investing in Canberra

Canberra tends to be a particularly stable rental market due to a steady stream of government workers and university students needing accommodation. But, while rents have increased dramatically in many markets around Australia over the past two years, Canberra has seen less movement. 

Gross rental yields are above average and the vacancy rate, while higher than in other states, is still holding at tight levels, making for a less volatile market for investors.
 

Top 5 Canberra suburbs for annual growth