Canberra's Housing Market Set to Soar in 2026 with Emerging Suburb Hotspots
After a period of subdued conditions, Canberra's property market is poised for a significant recovery in 2026, with projections indicating it will reach new heights. According to the Domain Forecast Report 2026, the city's average house price is expected to hit a record $1.18 million, marking an increase of approximately $78,000 from current levels. Unit prices are also projected to rise, reaching $631,000.
Inner South Suburbs Offer Quality and Value
Real estate agents are highlighting Canberra's Inner South as a key area to watch, though not necessarily the traditional heavyweights. Michael Morris of Hive Property notes that Griffith has emerged as a standout value proposition, surpassing suburbs like Red Hill and Deakin. He attributes this shift to post-COVID lifestyle changes, with buyers seeking active outdoor living and proximity to amenities like schools and Manuka.
Oumaya Escribe of Belle Property Canberra points to Barton as another appealing option, thanks to its mix of residential pockets, evolving apartment stock, and proximity to the Parliamentary Triangle. She emphasises that Barton offers compelling value across the market, attracting young professionals, first-home buyers, downsizers, and investors, with strong short-term accommodation returns and superior build quality.
Buyers Demand High Quality and Patience
The forecast report reveals that Canberra remains Australia's most affordable capital city when comparing home prices to household incomes. Both Morris and Escribe agree that Canberra buyers are discerning and patient, prioritising quality over quick purchases. Morris advises vendors to focus on creating high-quality products, as buyers are willing to pay for them and are quick to identify corners cut in construction.
Escribe adds that even first-home buyers have extensive checklists, conducting thorough research and refusing to settle for less than their desired criteria. This trend underscores a more educated and selective buyer pool in the current market.
Value and Community Beyond the ACT Border
Beyond Canberra, suburbs like Yass are gaining attention for their affordability and community appeal. George Southwell from Ray White Rural Canberra Yass cites strong economic development and major infrastructure projects as growth drivers, attracting workers, young families, and professionals with flexible work arrangements.
Yass offers a median house price of $720,000, with rental returns averaging 6 per cent and capital growth of 4.5 to 5 per cent annually. Southwell highlights the suburb's community feel, exemplified by active local events like run clubs, making it an attractive option for those seeking a balanced lifestyle close to a major centre.
Coastal Pockets Provide Affordable Opportunities
On the South Coast, Dawn Mason from Ray White Batemans Bay, Moruya and Ulladulla identifies Moruya as a hotspot to watch, driven by renewed interest from the new stage four hospital project. She also notes the popularity of coastal areas like Broulee, Tomakin, Mossy Point, Ulladulla, and Malua Bay, where some suburbs offer unexpected value.
Mason observes that properties priced under $800,000 are in high demand, partly due to government grants, with buyers focusing on presentation and return potential. This trend reflects a broader shift of investors moving funds from banks into real estate, seeking tangible assets in affordable coastal pockets.
