5 best suburbs in Canberra to invest in 2024
In 2024, Canberra is a stark exception to the national theme of recovery and growth in residential real estate markets. The ACT is the weakest of the nation’s market jurisdictions and is ranked last on three of the five metrics (those being sales volumes, quarterly price growth,vacancy rates, rental growth and infrastructure spending), and last overall.
20 Mar 2024
In 2024, Canberra is a stark exception to the national theme of recovery and growth in residential real estate markets. The ACT is the weakest of the nation’s market jurisdictions and is ranked last on three of the five metrics (those being sales volumes, quarterly price growth,vacancy rates, rental growth and infrastructure spending), and last overall.
Canberra has a history of providing steady and consistent property markets, but currently it’s failing to rise in any of our performance indicators. Its best result in the national ratings is 12th out of 14 jurisdictions on quarterly price growth. It has the highest vacancy rate among the state and territory capital cities, rents are weak by national standards, sales activity is decidedly anaemic and price growth is hard to find. The City apartment market was a rare exception to rising prices.
Canberra was one of the few major markets in Australia that failed to deliver any substantial price growth in 2023, and our analysis of the ACT data suggests 2024 will be similar. It’s not a coincidence that the ACT has one of the weakest economies among the states and territories, according to the State of the States report published by CommSec. Real estate markets are essentially local in nature and property performance arises from the strength of the local economy.
Top 5 Rising Stars
- Calwell
- Canberra City
- Dickson
- Gungahlin
- Wanniassa
Calwell
The Tuggeranong District in Canberra’s south is one of the steadiest sectors in an otherwise lukewarm ACT market, with Calwell being one of the more vibrant suburbs. Calwell has easy access to Canberra Nature Park and Tuggeranong Hill Nature Park, and its amenities include multiple schools, a shopping centre and Calwell District Playing Fields. Canberra’s median house price is $970,000, so Calwell ($780,000) is relatively affordable and vacancies are below 1%.
Canberra City
Canberra’s median unit price fell slightly in 2023, but Canberra City was an outlier with its median rising 11% to $650,000. In 2023 there were 135 apartment sales. Solid buyer demand isn’t surprising given everything that Canberra City is close to: the Australian National University, the Canberra Institute of Technology, the National Museum of Australia and Parliament House. Vacancies are a little volatile, as they often are in inner-city markets, but rental yields are solid.
Dickson
The inner northern suburb of Dickson has one of the best long-term capital growth rates in Canberra. House prices average 9% per year over the past decade. The median fell in the past year, but returned to growth in the latest quarter, which is rare in Canberra at the moment. It now sits at $1.15 million. Apartments (median $630,000) provide an alternative, and unit sales outnumber house sales 2:1. The suburb has schools, shops and parks only a few kilometres north of Canberra City.
Gungahlin
The Gungahlin District in Canberra’s north is consistently an ACT market leader, especially since light rail was introduced in 2019. This hub suburb attracts steady buyer demand, with 61 house sales and 183 apartment sales in the past 12 months. It’s popular for its affordability (median apartment price is $450,000) with multiple school and shopping options, Canberra Nature Park, a golf course, water features and rail links to Canberra City.
Wanniassa
This southern suburb attracts consistent buyer demand because it offers a lot at a median house price ($850,000), which is about $100,000 below the overall Canberra median price. The suburb has multiple schools, sports facilities and shopping options. It also borders Canberra Nature Park and Wanniassa Hills Nature Reserve, and is just a few kilometres away from the extensive amenities and services in the Tuggeranong Town Centre.
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| Suburb | Median price |
1-yr growth |
10-yr average annual growth (%pa) |
Vacancy rate |
Median rental yield |
Initial Outlay (no concessions) on 20% deposit |
Monthly repayments |
|---|---|---|---|---|---|---|---|
| Calwell | $780,000 | -10.3% | 6.1% | 0.8% | 4.3% | $178,136 | $3,944 |
| City (Units) |
$650,000 | 10.9% | 7.1% | 2.2% | 5.3% | $146,046 | $3,287 |
| Dickson | $1,145,000 | -7.0% | 8.8% | 1.9% | 3.2% | $273,396 | $5,790 |
| Dickson (Units) |
$630,000 | 12.2% | 6.0% | 1.9% | 5.1% | $141,182 | $3,186 |
| Gungahlin | $950,000 | -2.1% | 5.3% | 1.6% | 4.0% | $222,166 | $4,804 |
| Gungahlin (Units) |
$450,000 | -1.1% | 5.9% | 1.6% | 6.1% | $97,866 | $2,275 |
| Wanniassa | $850,000 | -5.0% | 7.8% | 0.8% | 4.2% | $196,266 | $4,298 |
Source: www.canstar.com.au. Prepared on 22/01/2024. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the average variable interest rates of 6.5% (20% deposit) and 6.8% (10% deposit) and a loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $600,000 over the past year, rounded to the nearest 0.1%. Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2020-21), adjusted by the ABS Wage Price Index (Sep-2023) for each state.
Cover image source: Taras Vyshnya/Shutterstock.com
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This article was reviewed by our Content Production Assistant, Canstar Ena Warner before it was updated, as part of our fact-checking process.
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