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Top 10 Canberra Suburbs for Investment Property

If you’re considering buying investment property, Canberra has much to offer. As the capital city of Australia, Canberra offers a robust property market with a variety of suburbs that can provide ideal opportunities for investors. 

Before purchasing investment property, there are a number of factors to consider. These included the type of property you want to buy (apartment vs house), what area you are interested in and your finance strategy.

When it comes to finance, it is a good idea to speak to an experienced local mortgage broker who can help identify the right loan structure for your goals.

The area you wish to buy in comes down to your own strategy and preference. This guide highlights 10 suburbs in Canberra that stand out for various reasons for property investment in 2025. We'll cover key data like median property prices, rental yields and market trends to help you make informed decisions when it comes to your investment property.

Why choose Canberra for an investment property? 

In 2025, Canberra can be an appealing property market for investors due to its stable growth, strong rental demand and relatively low vacancy rates. The city’s strong economy, government employment base and well-connected infrastructure contribute to a resilient property market that attracts both renters and investors.

According to CoreLogic, Canberra's median house price is approximately $930,000, while the median unit price is around $600,000. Despite steady growth, Canberra remains more affordable than other Australian capital cities like Sydney and Melbourne, offering a balanced entry point for new investors.

Pros of the Canberra investment property market:

  • Strong rental demand: Canberra's high population of public servants, university students and professionals creates a solid rental market, providing consistent rental income opportunities for property investors.
  • Low vacancy rates: The city’s vacancy rates are typically around 1-2%, reflecting a tight rental market that supports stable income and reduces the risk of long-term vacancies.
  • Positive rental yields: The combination of affordable property prices and high rental demand leads to solid rental yields for both houses and units. Canberra often sees gross rental yields between 4-5% for units and 3-4% for houses.
  • Government stability: As the nation’s capital, Canberra has a high proportion of government jobs, which historically has contributed to economic stability and consistent rental price growth.

The Canberra market has also seen growth in the construction of new apartments, providing a range of affordable property options for investment buyers looking for different property types. Additionally, ongoing infrastructure developments like the light rail extension make outer suburbs more accessible, boosting their appeal to renters and investors alike.

Canberra’s property market in 2025 offers a variety of opportunities for investors, depending on their goals and preferences. Each of these suburbs has unique characteristics that make them worth consideration for property investors. Keep in mind that past performance is not an indicator of future performance and it is a good idea to do your research before making a decision.

1. Belconnen

  • Suburb Overview: A well-established area, Belconnen is known for its shopping centre, parks and access to public transport. Its lively community and proximity to key amenities make it a popular area for both renters and investors.
  • Average Property Prices: Median house price is around $780,000.
  • Rental Yields: Yields range between 4-5% for houses and units.
  • What makes it worth consideration? Affordable entry prices, low vacancy rates, and historically steady growth make Belconnen a worthwhile consideration for investors.

2. Gungahlin

  • Suburb Overview: Gungahlin is one of Canberra’s fastest-growing districts, offering modern amenities, schools and recreation facilities. It has seen considerable development, contributing to its strong rental demand.
  • Average Property Prices: Median house price is around $850,000.
  • Rental Yields: Yields average 4-5%, especially for newer properties.
  • What makes it worth consideration? Its growing population and demand for rentals have historically provided opportunities for consistent rental income and capital appreciation.

3. Woden Valley (Lyons, Phillip)

  • Suburb Overview: Located close to Canberra's city centre, Woden Valley suburbs like Lyons and Phillip offer a mix of quiet residential streets and commercial hubs, appealing to a range of renters.
  • Average Property Prices: Median house price in Lyons is $790,000; median unit price in Phillip is $490,000.
  • Rental Yields: Average yields range between 4-6% for units and 3-4% for houses.
  • What makes it worth consideration? With their strong rental demand and varied property types, these suburbs have historically presented opportunities for both rental yields and long-term property growth.

4. Tuggeranong

  • Suburb Overview: Tuggeranong offers a family-friendly environment and a more relaxed lifestyle while still providing access to amenities and services. It is home to large green spaces and various recreational facilities.
  • Average Property Prices: Median house price is around $720,000.
  • Rental Yields: Consistent yields range between 3.5-4.5%.
  • What makes it worth consideration? Tuggeranong's affordable prices and steady rental demand make it appealing for investors.

5. Franklin

  • Suburb Overview: A well-planned suburb in the Gungahlin district, Franklin is family-oriented, with a range of schools, parks and shopping facilities. It is known for its modern housing and connected public transport.
  • Average Property Prices: Median house price is around $820,000.
  • Rental Yields: Strong rental yields between 4-5%.
  • What makes it worth consideration? With growing infrastructure and low vacancy rates, Franklin is an appealing area for renters, which could provide opportunities for investors.

6. Watson

  • Suburb Overview: Close to Canberra's CBD, Watson boasts proximity to universities, parks and shops, making it ideal for students and young professionals. The suburb's growth is fueled by its accessibility and lifestyle offerings.
  • Average Property Prices: Median house price is around $880,000.
  • Rental Yields: Average rental yields are around 4-5%.
  • What makes it worth consideration? Watson’s strong demand and steady growth make it a location worth investigating for investment.

7. Bruce

  • Suburb Overview: With a mix of educational institutions like the University of Canberra and sports facilities, Bruce is popular among students and young professionals. Its well-connected public transport makes commuting easy.
  • Average Property Prices: Median house price is around $820,000.
  • Rental Yields: Rental yields average 4-5%.
  • What makes it worth consideration? The stable demand for rental properties from students and professionals has provided a consistent tenancy.

8. Coombs

  • Suburb Overview: Part of the Molonglo Valley development, Coombs is a newly established suburb with modern housing and green spaces. It attracts families and young professionals seeking a balance between urban living and nature.
  • Average Property Prices: Median house price is around $740,000.
  • Rental Yields: Strong yields between 4-5%.
  • What makes it worth consideration? With its affordable entry prices and growing infrastructure, Coombs offers promising rental demand.

9. Crace

  • Suburb Overview: Crace is known for its community feel, parks and modern housing options. It attracts both families and professionals due to its well-developed amenities and easy access to Gungahlin and Belconnen.
  • Average Property Prices: Median house price is around $840,000.
  • Rental Yields: Yields typically range between 4-5%.
  • What makes it worth consideration? The balanced mix of strong rental demand and historical capital growth makes Crace an option worth considering for investors.

10. Greenway

  • Suburb Overview: Located in the Tuggeranong district, Greenway is a relatively affordable suburb offering proximity to shopping hubs, Lake Tuggeranong and recreational areas. It’s an appealing choice for renters looking for convenience and value.
  • Average Property Prices: Median house price is around $710,000.
  • Rental Yields: Yields range between 4-6%.
  • What makes it worth consideration? With lower property prices and steady rental demand, Greenway could be worth looking into for investors.

Key Considerations When Selecting a Suburb for Investment

Choosing the right suburb for your investment property requires careful planning and research. Various factors can influence the potential return on your investment. Here are some key considerations to keep in mind during your property search:

  • Median Price: Evaluate the median price of properties in potential investment suburbs. A lower entry point can mean a more manageable loan, but ensure it aligns with rental demand and growth prospects.
  • Home Loan Options: Compare different lenders and rates to find the right fit for your investment strategy. A lower rate can significantly impact your overall returns and cash flow.
  • Yields: Consider the rental yields in your targeted suburb. Higher yields indicate better potential for extra income and can help cover your mortgage repayments more effectively.
  • Real Estate Market Trends: Keep an eye on real estate market trends in your chosen areas. Understanding price fluctuations, growth rates and upcoming developments will help you assess the stability and future potential of your investment.
  • Investment Opportunities: Identify investment opportunities by looking at both established and emerging suburbs. Ideally you’d be looking for strong rental demand, future infrastructure plans and steady growth.
  • Type of Property: Choose the right type of property for your investment goals. In some cases, houses may offer better capital growth, while units or townhouses can provide higher rental yields and affordability.
  • Rental Rates: Compare rental rates in potential suburbs to gauge income potential. Higher rental rates combined with a strong demand can lead to more secure and stable returns.
  • Cash Rate Impact: Monitor the cash rate set by the Reserve Bank of Australia (RBA), as changes directly affect mortgage interest rates. A lower cash rate can improve your borrowing power and enhance cash flow from rental income.
  • Compound Growth Rate: Evaluate the compound growth rate of property values in the area over the past few years. Suburbs with consistent growth will likely provide better capital gains.
  • Get Professional Advice: Seek advice on your investment from mortgage brokers, real estate agents and financial planners who understand the local market. Their insights can help you identify opportunities and avoid potential pitfalls.

By considering these key factors, you'll be better equipped to find an investment suburb that aligns with your financial goals.

FAQs

What makes a suburb ideal for investment?

Suburbs with affordable entry prices, strong rental demand, low vacancy rates and potential for property value growth are ideal for investment.

How much rental yield can I expect in Canberra?

Rental yields vary by suburb and property type, but Canberra generally offers 3-5% yields for houses and 4-6% for units.

Is negative gearing beneficial for property investors?

Negative gearing can be beneficial as it allows investors to offset losses against taxable income, providing tax benefits while building equity. This strategy isn’t right for everyone so seek advice from your accountant.

Are apartments or houses better for investment?

It depends on your budget and strategy. Houses can provide greater capital growth, while apartments can offer higher rental yields with a lower entry cost, however this isn’t always the case.

How do I calculate potential rental income?

You can estimate rental income by researching average rental rates for similar properties in the area and consulting with local real estate agents.

What is a good vacancy rate for investment properties?

A vacancy rate of 2-3% is generally considered healthy, indicating a balanced rental market with steady demand.

Should I work with a mortgage broker for my investment property loan?

Yes, a mortgage broker can provide tailored advice, access multiple loan options, and guide you through the financing process to make an informed decision.

Final Thoughts

Our team at Loan Market Canberra is here to provide guidance and support to make informed decisions, access competitive loan options, and help you on your investment journey.


Published: 28/5/2025
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