M:
The Big Picture
Canberra Residential Spring/25
Residential Sales Update
Canberra residential sale transactions tallied to 2,689 in the second quarter of 2025, a downward movement of 3% from the previous quarter In the past year, the total number remained steady, reaching 11,690 sales This was influenced by the tight lending environment with a focus on serviceability and the market anticipating further interest rates reductions. As a benchmark, over the past five years, the quarter tally averaged 3,324 sales and the annual average was 13,415 sales
Auctions
In the last week of June 2025, 67 residential auctions were held across Canberra. According to Cotality, 64.2% of the homes were sold under the hammer Clearance rates above 70% suggest strong demand and a seller’s market, while a rate below 60% indicates weaker demand and a buyer’s market This result was higher than one quarter ago at 45 2%, when 73 auctions were held By comparison, the same quarter last year saw 56 3% sold, from 65 auctions
Total Number of Sales
Auction Clearance Rate Canberra
Average Days on the Market Canberra Duration 75 days
Canberra homes took an average 75 days on market - from the time they were listed to the day they went under contract - in Q2 2025 This duration was 67 days the quarter before and 68 days one year ago A lower number of days on market mean homes are selling fast with more desirable properties, while a higher number of days suggests a slower market with above market values Looking back, the fiveyear average has taken 62 days to sell a home.
Listings
Newly advertised property listings in Canberra were 7 4% lower in the month of June 2025 than the equivalent period last year, according to Cotality This trended below the Australian average of -11.7% and below the -12.9% across Australian capital cities
Canberra’s total number of listings in the month of June 2025 were 0.8% above the equivalent period last year, according to Cotality By comparison, the Australian average for total listings was -5.8% and across Australian capital cities was -4 4%
Change in Median Prices Canberra Median Price $902,000
Residential property prices across Canberra changed -0 9% in the year ending Q2 2025, with a 2 0% increase recorded in the most recent quarter This brought the median residential value to $902,000, reflecting a growing resilience in the market. Annual residential price growth has averaged 6.3% over the past five years
Forecast for Median Prices Canberra Price Outlook +1%
Looking ahead, McGrath Research forecasts Canberra residential property prices to increase by 1% by the end of 2025, followed by a stronger 2% rise in 2026. These projections reflect increasing demand from lowered interest rates and improving consumer confidence
Change in Residential Rental Vacancy Canberra Vacancy 1.1%
Canberra residential rental vacancy was recorded at 1 1% in Q2 2025, falling 10 bps in the quarter to fall 60 bps over the past year according to APM Generally, around 3% vacancy is considered a balanced market between rental supply and demand Below this equilibrium is considered to be an undersupplied pool of rental homes. Over the past five years, rental vacancy has averaged 1 3% per year
Yield -5 bps
Residential gross rental yields fell 5 bps in the Q2 2025 quarter to be 4 46% across Canberra, while being 11 bps higher than a year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. A range of 4.00% to 5.00% is considered good for many properties located in capital cities, while below this, may indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 4 43% over the past five years
Change in Gross Rental Yield
Residential Rents Update
Canberra residential rents remained stable in Q2 2025, while increasing 2 3% over the past year, to stand at $655 per week Low vacancy has kept rents elevated, albeit the rate of rental growth has slowed On average, over the past five years, rents grew 4 0% per year
Change in Median Weekly Rents
Rental Outlook +2%
As Canberra continues to experience low residential rental vacancy, McGrath Research forecast sustained upward pressure on rents of 2% at the end of 2025, with a further 2% rental growth likely in 2026
Forecast for Median Rents
Definitions
Canberra
Canberra refers to the Greater Capital City Statistical Area or ‘Greater Canberra’ as defined by the Australian Bureau of Statistics.
Guiding you home
Michelle Ciesielski Head of Residential Research, McGrath Research
michelleciesielski@mcgrath com au +61 414 694 220
www mcgrath com au