5 best suburbs in Canberra to invest in 2025

There’s a reason Canberra seldom features in any conversation about residential real estate prospects: the property market in the nation’s capital continues to under-achieve compared to other property markets across Australia. There was zero price growth in 2024, and the latest analysis suggests little has changed—though markets have improved slightly since last year.

At a time when Australia is having an unprecedented boom in infrastructure construction, Canberra is not onboard. Canberra also suffers from an absence of affordability, with a median house price close to $1 million despite the lack of recent price growth.

The best hope for revival lies with infrastructure projects. While there is little currently under construction, there are however, a number of possibilities in planning which could elevate the local economy and generate some life in the Canberra property market.

The data below was prepared in February 2025 with suburb median prices, growth rates, vacancy rates and median rental yields provided by Hotspotting by Ryder and initial outlay and monthly repayments calculated by Canstar Research.

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Top 5 best suburbs to invest in Canberra

• Banks
  
• Higgins
• Kingston (U)
• Macquarie (U)
• Turner (U)

Banks

This southern suburb may be the farthest from central Canberra, but buyer demand is rising because it offers a degree of affordability in a city where the median house price is close to $1 million. Banks has a solid growth record, averaging 8% a year over five years, and rents rose 7% in the past 12 months. Like most Canberra suburbs, Banks has lots of amenities and green space, and is close to Lanyon Marketplace.

Higgins

Higgins, in the north-west of the ACT, is close to the Kippax Fair Shopping Centre and Burns Golf Club Belconnen, and is connected via Southern Cross Drive to the Belconnen CBD and the University of Canberra campus in nearby Bruce. Buyer demand has been rising in Higgins, with the median house price up 8% in the past 12 months in line with the suburb’s long-term growth average.

Kingston (U)

The inner-city suburb of Kingston has rising demand for apartments, with a median price below $700,000, thanks to its location and many lifestyle features. Kingston fronts Lake Burley Griffin and Jerrabomberra Wetlands Nature Reserve, a short distance from Parliament House. It also has an array of waterfront restaurants and cafes in the Kingston Foreshore precinct.

Macquarie (U)

Finding homes at prices below $500,000 can be difficult in Canberra—but the unit market in the suburb of Macquarie may offer some good options. Macquarie borders the hub suburb of Belconnen, close to the University of Canberra. Even after a 23% increase in the past 12 months, Macquarie’s median unit price is $485,000. Vacancies are 0.8%, compared to the Canberra average of 1.7%, and rents rose 10% in 2024.

Turner (U)

This is a popular suburb for apartment buyers and tenants, situated on the doorstep of the sprawling Australian National University campus and the many other features of central Canberra. The suburb also offers Turner Parkland, Haig Park and other green space areas. Buyer demand is rising and the $630,000 median price for apartments is likely to increase in 2025. Vacancies, at 1.1%, are well below city averages.

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Best suburbs to invest in Canberra 2025

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Source: www.canstar.com.au. Prepared in February 2025. 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 where applicable. FHB concessions include stamp duty only. 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 interest rates of 6.20% (20% deposit) and 6.34% (10% deposit) and a loan term of 30 years. Interest rates based on the RBA Lenders’ Interest Rates (November 2024). Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2021-22), adjusted by the ABS Wage Price Index (Sep-2024) for each state.

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What are some of the factors that are affecting the Canberra market?

Sales volumes

The latest analysis of sales activity found only a third of Canberra suburbs have a growth pattern. While this is one of Canberra’s strongest areas, it remains well behind much of the rest of the country.

Quarterly price growth

Unsurprisingly, given the absence of vibrant buyer demand, price growth was weak in Canberra in 2024 and in the latest quarter. Only a quarter of Canberra suburbs had any price momentum in the review quarter.

Vacancy rates

At a time of very low vacancies in so many locations across Australia, Canberra has had a vacancy rate well above average in recent years—and continues to do so. Consequently, only 29% of ACT locations have a vacancy rate under 1%.

Rental growth

In keeping with its results with vacancies, Canberra only 29% of Canberra recorded rent increases above 5% in 2024. This also reflects the absence of energy in the local economy and weak population growth, with the ACT well below the national average in the latest ABS data.

Infrastructure spending

The ACT has few major developments under way, which is ironic for the capital city of a nation undergoing a spectacular infrastructure boom. The last major project to affect the Canberra property market was the first stage of the Canberra Light Rail, which was completed in 2019. Future stages are planned but it may be some time before activity begins.

Cover image source: Taras Vyshnya/Shutterstock.com