Best suburbs to invest in Canberra 2025

Looking to buy property in Canberra but not sure where to start? 

Then we can help with an overview of the local market, how the experts are forecasting it will perform in 2025, and the best-performing suburbs in the nation’s capital. 

Like the other smaller capital cities, Canberra property values moved very little in 2024, But there are still pockets of opportunity, and rental yields are performing well due to a lack of stock, so there are buying opportunities out there for long-term investors.

Let’s start by looking back at 2024, and what it could mean for Canberra property prices in 2025.

What did the property market in Canberra look like in 2024?

Canberra’s property market experienced a subdued 2024, reflecting the broader trend seen across Sydney, Melbourne, and other smaller capitals, while Perth, Brisbane, and Adelaide saw significant gains. 

According to CoreLogic data, Canberra home values edged down by -0.4 per cent over the year, bringing the median property price to $844,277. Once firmly established as the country’s second most expensive capital city, Canberra was overtaken by Brisbane during the year, with Perth and Adelaide also closing in on its median price.

Herron Todd White, an independent property valuation firm, noted that Canberra’s market initially showed promise, with house values growing in the first three quarters of 2024. By September, the median house price was $967,933, up 0.3 per cent for the quarter, while units declined 1.8 per cent to a median of $591,952. However, much of this early optimism did not translate into sustained growth, as an increase in sales listings—particularly from newly completed developments and previously limited supply in 2021 and 2022—hampered price momentum.

The availability of greenfield land in the ACT and surrounding regions also played a role in the market’s slow pace, as rising construction costs forced some owners to abandon their building plans and list their vacant blocks for sale instead. The easing market, however, offered opportunities for first-home buyers, who were able to step onto the property ladder in a less competitive environment.

Canberra property market forecast 2025

The Canberra property market forecast for 2025 remains uncertain, with experts divided on whether the city will see modest growth or continue its subdued trajectory. 

ANZ anticipates a small recovery, projecting 2 to 3 per cent growth for the year. Domain forecasts a split outcome, expecting houses to rise between 3 and 5 per cent, while units may decline between -2 and -4 per cent, reflecting ongoing oversupply concerns.

KPMG offers a more optimistic outlook, predicting Canberra house prices will rise by 3.5 per cent, with units outperforming at 4.0 per cent growth, a contrast to Domain’s more cautious unit forecast. 

However, Propertyology takes a slightly bearish stance, forecasting an overall decline of between -1 and -4 per cent in 2025. They cite slowing internal migration, subdued airport passenger volumes, softening visitor spending, and an expected tightening of government expenditure as key challenges. With one of Australia’s highest rental vacancy rates and ample housing stock, they suggest the market may remain flat for some time, presenting better opportunities for owner-occupiers rather than investors.

What's the Canberra apartment market like?

Canberra’s unit market struggled somewhat in 2024, with median prices declining -2.9 per cent, while house prices saw a slight 0.4 per cent increase, according to CoreLogic data.

The unit market faced additional headwinds, with higher interest rates and a surge in new developments leading to widespread availability. High-density projects like the WOVA development in Woden (with over 800 units) and large-scale apartment builds in Belconnen and Phillip town centres increased supply, dampening price growth. 

While inflationary pressures eased throughout 2024, the lack of interest rate cuts meant there was little relief for mortgage holders and prospective buyers. Canberra’s market, while stable, remained one of limited momentum heading into 2025.

What are the best suburbs to invest in Canberra 2025?

Before we look at the top-performing suburbs in Canberra, it’s worth bearing in mind that there is no single property market. Markets are dynamic and change from property type to property type, and from postcode to postcode - which is why you need to do your research before you invest.

With this in mind, here are some suburbs to put on your shortlist, having been listed in REA's Hot 100 Suburbs to Watch in 2025.

Campbell, ACT

With a median house price of $1,750,000 and 4.0 per cent annual growth, Campbell remains one of Canberra’s most desirable suburbs, offering a blend of proximity to the CBD and a peaceful, leafy environment. While not as expensive as Inner South counterparts like Forrest or Yarralumla, it boasts strong buyer demand, particularly from defence personnel, given its proximity to Duntroon, the Australian Defence Force Academy, and the War Memorial. Unit prices surged 29.0 per cent in 2024 to a median of $666,250, reflecting increasing demand for modern apartments in the suburb’s southwest.

Griffith, ACT

As one of Canberra’s oldest and most prestigious suburbs, Griffith saw house prices decline by -9.0 per cent over 2024, bringing the median down to $2,125,000, while units dropped -7.0 per cent to $614,500. The suburb remains highly sought after for its pre-war homes, boutique shopping, and proximity to Manuka’s commercial precinct, making it a prime location for high-end buyers. Over half of Griffith’s properties are apartments, and the suburb continues to see significant redevelopment, particularly in the northwest, attracting professionals and investors.

Kambah, ACT

Canberra’s largest suburb by area, Kambah, is also one of its most tightly held, with homeowners typically staying for over a decade. The median house price grew 1.0 per cent in 2024 to $850,000, while unit prices dipped -2.0 per cent to $582,500, keeping it an affordable option for families. Known for large block sizes, good schools, and easy access to nature reserves, the suburb is expected to see steady price growth, with demand remaining strong and recent investments in local amenities, including Kambah Village, further boosting its appeal.

Wright, ACT

Located in the Molonglo Valley, Wright is a young, master-planned suburb offering modern homes and apartments with access to natural attractions like Stromlo Forest Park and the National Arboretum. While house prices softened by -3.0 per cent in 2024 to a median of $1,160,000, the unit market performed well, climbing 11.0 per cent to $490,000. With new schools, shops, and a proposed light rail extension, as well as improved connectivity through the John Gorton Drive extension, the suburb is well-positioned for long-term capital growth.