Canberra is known for many things: great people, places and living, but one title it proudly holds onto is ‘The Goldilocks of Australian Real Estate’.
With housing prices known to be “not too hot, not too cold, but just right”, investors are looking at guaranteed returns and a stable market.
Although most property markets are now turning in favour of home buyers, Canberra is still holding onto its prices. Some of the best suburbs in Canberra report prices that are still 41% higher than pre-pandemic levels, even after taking a 6% cut.
Not every suburb offers the best investment opportunity, and you’re going to want to look at high-growth suburbs that are conveniently located, family-friendly and have a history of yielding sizable profits regularly.
Here’s what the latest reports tell us:
The Canberra suburb to invest in if you’re looking for guaranteed returns
Chisholm's location just 16 km from the heart of Canberra, its consistent quarterly sales, combined with its low vacancy rate of just 0.1%, make it an attractive choice for property investors.
Investors have turned to areas with a history of stability and reliability as a result of the recent decline in property prices in Australia. Despite seeing slightly lower returns than Chisholm over the past year at 7%, the area has a reputation for long-term benefits, with compound capital gains of 61.2% in the last five years.
The suburb's strong infrastructure and access to top schools, restaurants, shopping centres, and healthcare facilities make it even more appealing, and the high demand for rentals in the area has led to a 10% increase in rental amounts.
Key statistics on Chisholm
- Median house price in this Canberra suburb: $840,000
- 5-year compound growth rate in Chisholm: 61.2%
- Median rental rate in Chisholm: $650
- Average rental yield in Chisholm: 3.99%
The Canberra suburb to invest in if you’re looking for a residential hotspot
Franklin is a rising star among Canberra suburbs, attracting young professionals, families, and retirees. With a mix of parkland and residential areas, as well as streets designed to reduce traffic, it offers a peaceful and convenient lifestyle.
As well as being well-connected through major roads, three metro stations and a light rail line, the suburb is home to a variety of mixed-use developments including shopping centres and commercial spaces.
In comparison to other suburbs in Canberra, Franklin boasts more affordable property prices with a median house price of just over $1 million. Investors can expect a solid return, with annual capital growth of 17.5%.
For those in search of rental properties, Franklin is a good choice with high rental rates for houses and units, outpacing those of most Australian suburbs.
Key statistics on Franklin:
- Median house price in this Canberra suburb: $1,040,000 for houses and $490,000 for units
- 5-year compound growth rate in Franklin: 46.5% for houses and 34.3% for units
- Median rental rate in Franklin: $740 for houses and $530 for units
- Average rental yield in Franklin: 3.7% for houses and 5.4% for units
The Canberra suburb to invest in if you’re looking for cost-effective units
A bustling suburb in the ACT, Dickson is experiencing a growing trend in popularity among investors. Investors can now buy into sought-after areas at an affordable price with units available at a lower-than-average cost.
As demand for units in Dickson increases, prices have seen a significant increase of approximately 45% over the last two years. In recent reports, investors have benefited from capital gains of around 5.7% and the suburb recorded 89 sales in the past 12 months.
While houses have not performed as well as units due to high costs, investors may still be able to make substantial profits. The suburb recorded an impressive annual capital growth of 16%.
Dickson offers a secure and inviting atmosphere for its residents, with long-term residents praising the suburb on Homely for its various restaurants, stores, and transportation options. This has led to high rental demand and profits, particularly for units.
Key statistics on Dickson:
- Median house price in this Canberra suburb: $1,184,000 for houses and $542,200 for units.
- 5-year compound growth rate in Dickson: 39.3% for units and 54.8% for houses
- Median rental rate in Dickson: $570 for units and $698 for houses
- Average rental yield in Dickson: 4.9% for units and 3.1% for houses
The Canberra suburb to invest in if you’re looking for great apartment price growth
Sprawled along the Molonglo Valley across 1.3 sq-km, Wright is the suburb to watch. It has been identified by Open Agent as a top investment destination thanks to its thriving unit market.
Investors have seen substantial capital gains of over 28% in the past year, with more potential for long-term profits. The median price growth in Wright has reached 31.03% in the last 3 years, resulting in some of the highest rental yields in the country, close to $1,000.
Houses in Wright may have a higher cost, with most selling above $1 million, but careful investment can lead to significant long-term profits. Research shows that houses in Wright have an annual capital growth of 19.05%.
Wright is a prime location for families, with schools, restaurants, and shopping centres close to residential areas. The suburb is also home to lovely parks and is just 10 minutes from the iconic Lake Burley Griffin.
Key statistics on Wright:
- Median house price in this Canberra suburb: $530,000 for units and $1,250,000 for houses
- 5-year compound growth rate in Wright: 31.9% for units and 59.6% for houses
- Median rental rate in Wright: $530 for units and $950 for houses
- Average rental yield in Wright: 5.7% for units and 4.3% for houses
The Canberra suburb to invest in if you’re looking for affordable property prices
Located 16 km from the town centre, Greenway offers low home prices and high rental yields - the perfect combination for an investment suburb.
Properties are listed at affordable rates (by Canberra standards), with most houses and units going for around half of the city’s average selling price.
The apartment market in Greenway has seen impressive results in the past year, with 164 units sold and capital gains of around 24.7%.
Although Greenway homes may not have as high capital gains as some other cities in Australia, rental rates still provide a good return on investment.
Greenway has experienced significant growth in recent years, with high-density developments, numerous dining options, basketball stadiums, shopping centres, and leisure facilities.
Location bonus: Greenway borders the beautiful Lake Tuggeranong, making it a great area for families and kids to enjoy a walk, ride or picnic.
Key statistics on Greenway:
- Median house price in this Canberra suburb: $536,000 for units and $747,500 for houses
- 5-year compound growth rate in Greenway: 32.4% for units and 39.7% for houses
- Median rental rate in Greenway: $500 for units and $560 for houses
- Average rental yield in Greenway: 5.2% for units and 4.6% for houses
The Canberra suburb to invest in if you’re looking for high rental rates
Located just 15 minutes from the city centre, Coombs is a fast-growing suburb in Canberra. With new shopping centres, stores, schools, parks, and gyms, Coombs is becoming a popular place to rent.
Recent research shows that landowners in Coombs take home higher-than-average payouts every week, making it a great investment option. Coombs also has a low vacancy rate (0.97%), meaning investors are looking at stable incomes.
Coombs also records an average vacancy rate of 0.97%, one of the lowest in the country - which means that investors are also looking at a pretty stable income.
Although units are relatively cheaper than houses in Coombs, they both earn significant capital gains over time. According to market reports, unit investors can expect an annual capital growth of 28.7%, while homeowners can expect 24.9%.
Key statistics on Coombs:
- Median house price in this Canberra suburb: $711,000 for units and $1,338,000 for houses
- 5-year compound growth rate in Coombs: 52.1% for units and 46.1% for houses
- Median rental rate in Coombs: $600 for units and $835 for houses
- Average rental yield in Coombs: 5.3% for units and 4.4% for houses
The Canberra suburb to invest in if you’re looking for strong growth in property values
Just two minutes away from the Monaro Highway and within five minutes of major shopping centres, Calwell takes you to the south of Canberra where hill-cushioned homes are more spacious than you'd expect, with stunning views, charming gardens, and wide streets.
Investing in Calwell has shown positive results in the last year, with a 16.3% increase in house capital gains and 11.3% in unit capital gains, according to Smart Investment Property. These numbers are predicted to increase in the coming years, making Calwell a potentially profitable investment choice.
“A great place to live and bring up kids”, remarked a resident on Homely - and with a variety of recreational spaces, schools, religious institutions, and shopping options, it isn’t hard to see why.
Key statistics on Calwell:
- Median house price in this Canberra suburb: $872,500 for houses and $620,250 for units
- 5-year compound growth rate in Calwell: 62.9% for houses and 75.9% for units
- Median rental rate in Calwell: $640 for houses and $518 for units
- Average rental yield in Calwell: 4.1% for houses and 4.7% for units
The Canberra suburb to invest in if you’re looking for stable rental income
Bonner is a hot spot for investments as more people seek out a quieter countryside lifestyle. The suburb boasts properties with spacious lots, peaceful neighbourhoods, and plenty of kid-friendly green spaces.
Demand for properties in the area has been high; Bonner has seen a rental price growth of around 6.1% for houses and 6.9% for units in the last 12 months. The suburb also recorded a low average vacancy rate of around 0.87%.
Houses in Bonner are priced close to the average cost in the city ($1 million), but apartments can still be found at affordable rates (less than $700,000).
The high rental rates in the area provide a stable income and may continue to increase over time, making Bonner a great investment opportunity.
Key statistics on Bonner:
- Median house price in this Canberra suburb: $975,000 for houses and $693,000 for units
- 5-year compound growth rate in Bonner: 55.9% for houses and 55.0% for units
- Median rental rate in Bonner: $700 for houses and $610 for units
- Average rental yield in Bonner: 4.1% for houses and 4.7% for units
The Canberra suburb to invest in if you’re looking for capital growth
Casey’s performance over the last few years has placed it firmly on investors’ shortlists.
The suburb has seen growth in the last year, with a 26.3% increase in capital gains for houses and 11.3% for units. These property values are expected to double in the next few years, giving investors the chance to net a tidy profit. In the past 12 months, there have been 96 house sales and 67 unit sales in Casey.
We’ve also seen rental prices in the suburb go up by 30% in the past three years, offering investors a great way to earn extra income while waiting for the property to appreciate in value.
Despite being a newer investment suburb, Casey has quickly gained popularity as one of the fastest-growing areas in Australia. With plenty of nearby amenities and a beautiful setting, it's a great place for families, professionals, and people looking for an upgrade to live work and relax.
Key statistics on Casey:
- Median house price in this Canberra suburb: $947,500 for houses and $617,500 for units
- 5-year compound growth rate in Casey: 59.2% for houses and 50.1% for units
- Median rental rate in Casey: $700 for houses and $590 for units
- Average rental yield in Casey: 4.0% for houses and 5.0% for units
The Canberra suburb to invest in if you’re looking for high compound growth rates
Situated around 4 km from the Gunghalin Town Centre, Ngunnawal offers investors a chance to grow their wealth over time at an affordable price.
Investing in Ngunnawal's properties has proven to be profitable in the past year, with reported capital gains of 19.48% for houses and 27.62% for units, according to Your Investment Property.
The suburb saw a strong performance in the real estate market, with 199 house sales and 37 unit sales in the past year.
Ngunnawal is also highly rated for livability, with Homely reviews praising the suburb's accessibility to schools, shopping centres, and parks. Whether you're looking for a family-friendly area or a convenient investment opportunity, Ngunnawal could be the right choice for you.
Key statistics on Ngunnawal:
- Median house price in this Canberra suburb: $825,000 for houses and $670,000 for units
- 5-year compound growth rate in Ngunnawal: 73.5% for houses and 69.6% for units
- Median rental rate in Ngunnawal: $620 for houses and $550 for units
- Average rental yield in Ngunnawal: 4.08% for houses and 4.48% for units
Overview of the Canberra real estate market in 2023
Despite a slight dip in the latter part of 2022, the Canberra real estate market has still seen substantial growth in recent years, including during the pandemic boom.
According to Domain, the median house price has decreased by 6% but still remains well above pre-pandemic levels. The market experienced significant growth during the pandemic boom, and it would take a further 29% decrease in house values to return to pre-boom levels.
Looking ahead, experts anticipate that the market may experience a temporary decline in house values in the first quarter of 2023, but this is expected to pick up as interest rates decrease.
The rental market may also see a temporary increase in vacancy rates, but this is likely due to a surplus of new rentals during the festive season and demand is expected to pick up soon.
Canberra's real estate market has historically demonstrated stability, making it an attractive investment opportunity. Whether you're looking for long-term growth or steady income from rentals, the city offers a range of options for prospective investors.
If you’re ready to get investing, here are 9 things to know before buying an investment property. Planning out your requirements will not only save you time and money, but it will also make it easier to shortlist suburbs that work for you and your budget.
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