Compared to most other Australian locations, those who live in this city are more likely to be foodies, cyclists, kayakers, gym junkies, box-tickers and bean-counters.
As recently as 70-years ago, it was ranked as Australia’s 18th largest city. At the time, the population of just 28,000 was only half the size of Launceston and Ballarat.
Its world-class airport now services 2.8 million passengers per year, a very similar volume to Hobart.
It is globally admired for highly efficient town planning and appreciating the broader region’s glorious landscapes from a hot air balloon.
There are dozens of nearby wineries, an eclectic mix of institutions displaying history and culture, and a collection of secret tunnels beneath the CBD.
Stereotypically, residents are very polite. They have a subtle snobbery about them and are predominantly academics and artistic types with cautious personalities.
Of course, I am referring to beautiful Canberra.
Today, it boasts the title of Australia’s largest inland city, and 7th largest overall.
Well connected via the main arterial Hume Highway and Australia’s efficient airport network, Canberra is strategically central to Sydney (3-hours north-east), Albury-Wodonga (3-hours south-west), and Melbourne (7-hours south-west).
It is a 1-hour drive to the snow at Cooma, 2-hours to the coastal township of Batemans Bay and 3-hours to Mount Kosciuszko.
40 percent of Canberra’s population are aged 20 to 44 (the prime working years), which is much higher than the national average of 34 percent.
With the median house value now above $1 million, Canberra real estate is more expensive than Melbourne and less expensive than Noosa and Hahndorf.
Across generations, Canberra’s property market has proven to be very stable. It has experienced a few significant booms and some prolonged flat periods.
Whilst there are more than 400 townships across Australia, Canberra is the sole city that is administered by only 2-levels of government.
But, despite not adopting a local city council level of governing, its property sector is less efficient than many Australian jurisdictions and its property-related taxes are very high.
This report unpacks Canberra as a community, its property market and its economy.
City Profile
It is Australia’s bigwig capital.
Canberra’s core consists of Parliament House, the federal High Court, headquarters for the Australian Defence Force, our naval communications centre, the Royal Military College (Duntroon), the military academy, a suite of federal government departments, numerous embassies, lobby group headquarters and professional associations.
6 percent of Canberra residents have served the Defence Force at some stage, compared to 2 percent nationally.
A combined 25,000 full-time students are enrolled at the Australian National University (ANU), the University of Canberra and the University of NSW. A further 30,000 study at the Canberra Institute of Technology (CIT).
Using cutting-edge techniques to develop Australia’s elite athletes in a variety of different sports, the Australian Institute of Sport was established in Canberra in 1981.
The total annual value of Canberra’s economy is $25 billion (2023/24 GRP).
With that background, Canberra obviously has a very high white-collar demographic. And household wages are above average.
Since the start of this century, Canberra’s workforce has expanded significantly, from 165,000 to 280,000.
Over the same 25-year period, Canberra’s total population increased by 50 percent, from 320,000 to 480,000.
With the original purpose of developing Canberra being to appease domestic politics through centralising assorted government roles, its workforce 110-years later remains highly dependent on revenue from Australian taxpayers.
In 2025, 54 percent of Canberra’s total workforce were employed in 3-key sectors (Public Admin & Safety, Health and Education). That ratio compares to a 31 percent national average.
Out of 375,000 people employed by the federal government across Australia, 30 percent of them are based in one city that is home to just 1.7 percent of the nation’s total population.
For a city with 200,000 households and $13 billion in wages paid directly by the federal government to 115,000 Canberra residents, Canberra’s economy has enormous dependence on the federal government.
The ACT government employs a further 40,000 people (14 percent of the total workforce).
Many privately owned businesses depend heavily on various government departments for revenue. For example, a growing number of technology companies, cyber security specialists and software developers are now based in Canberra.
The visitor economy of the region is understated.
There are 40-wineries within half an hour of the city, the snow fields aren’t much further than that, and Canberra’s restaurants boast an impressive collection of international cuisines.
It is a wonderful city to enjoy numerous high-quality cultural and educational experiences. National monuments and museums include the Australian War Memorial, the Royal Australian Mint, the National Gallery, the National Museum and the National Library.
Property Market History
The land throughout the Australian Capital Territory is all leasehold.
In recent times, an average of 10,000 residential real estate transactions occur in Canberra each year.
There isn’t a person on the planet with more experience buying real estate in Canberra than local buyer’s agent, Claire Corby of Capital Buyers Agency.
Ms Corby explained to Propertyology that, subsequent to Canberra’s foundation in 1913, new lots of leasehold land were progressively released and dwellings erected, typically on a 99-year lease with the government.
“Generally speaking, when a lease expires the owner lodges a lease renewal and the government charges about $1,000 for the tick-and-flick formality,” said Claire Corby.
In a practical sense, the main difference between freehold title and Canberra’s leasehold is the additional bureaucracy for owners to carry out property improvements and developments, and higher fees.
While the current median house price is close to $1 million, Ms Corby says a basic house in Canberra in 2025 is closer to $1.3 million.
Direct property taxes on that will typically include:
- Stamp duty: $53,000 (or $56,000 for an investment property)
- Land Tax: $13,000 per year for investors ($0 for owner-occupiers)
- Property rates: $8,000 per year (charged quarterly)
“The leasehold nature of Canberra real estate allows owners of income-producing properties to claim make a claim in their tax return for the stamp duty expense during the financial year of purchase,” said Ms Corby.
In all other Australian state jurisdictions, stamp duty on real estate purchases is claimable by investors when they eventually sell the property.
History is proof that property booms and flat periods are just as common in Canberra as elsewhere.
Over just 5-years ending 1984, house values more than doubled in Canberra (to $84,000).
Two other eras which produced spectacular capital growth for Canberra houses were the 5-years ending 2003 (147 percent growth) and 5-years ending 2021 (78 percent).
While its property market experienced four isolated lean periods, no city will ever be immune to that.
Across the 35-years to 2025, Canberra’s median house value increased by $1 million over the total period. Canberra housing has proved to be a rock-solid asset.
The below graphical summary of the last 35-years illustrates Canberra’s solid performance over the long term (the dark blue line).
For comparison, Perth’s property market growth (the yellow line) was significantly more volatile. It had two periods of enormous growth, directly linked to the state’s economic dependence on mining royalty income, and long lean periods either side of the growth [refer this research report].
Canberra apartment values increased by only half the rate of houses. This is largely due to consistently less buyer demand for apartments.
As with every other Australian location, a large majority of owner-occupiers (who typically represent 70 percent of buyers) do not consider apartments to be fit-for-purpose of a ‘proper home’ [refer this statistical evidence].
Despite Canberra’s high household incomes, its homeownership rate of 67 percent is noticeably below the national average of 74 percent (2021 Census). The primary reason for this is the relatively high ‘transient element’ of Canberra’s workforce.
Canberra’s rental vacancy rate peaked at 5 percent back in 1993. But it has never exceeded 2.5 percent for the last 20-years.
“Every year, the months of December and January are notorious for a very high volume of people either packing up or unpacking their belongings from removal trucks,” says local buyer’s agent, Claire Corby of Capital Buyers Agency. “It creates higher than normal activity in both the rental market and the sales market.”
Of the 200,000 residential dwellings currently housing Canberra’s population, approximately 10,000 are government-owned, and the remaining 95 percent are privately owned.
A higher-than-normal portion of Canberra’s rental stock are properties which the landlord initially purchased for their own occupation. They subsequently moved out of the property and then placed a tenant in it.
That is what Propertyology describe as an ‘accidental investment’, as opposed to a financially intelligent decision with a truly borderless mindset.
According to Claire Corby, “…it is quite common for Canberrans to be hybrid property investors. They often have advanced expectations that they’ll work here for a defined number of years and then relocate. So, they buy here, live in it for a while, and rent it out for a while.”
Canberra’s median house value was $177,000 this time 25-years ago. It produced an average annual rate of growth of 7.5 percent to today’s $1,020,000.
Over the same quarter of a century, Canberra’s median apartment value increased by an average of 5.8 percent each year, from $145,000 to the current $600,000.
Given its unique economic profile, the single biggest influences on Canberra’s property market are the local and federal governments.
Upward and downward trends in government spending (budgets) directly affects employment stability and the sentiment of a high portion of Canberrans. The volume of government contracts awarded to private sector businesses is similarly affected.
Subsequent to the containment of the global health pandemic, there will likely be a prolonged period which will demand restrained federal government spending and a series of responsible measures to address significant budget deficits.
As for the financial strength of the ACT government, S&P Global Market Intelligence said in Q3 2025 that “… higher capital spending will weigh on overall cash deficits, driving the Territory’s debt above that of all other Australian states, except Victoria.”
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Housing & Town Planning
When making your way around Canberra, one’s eyes are drawn to the stunning centre piece of Lake Burley Griffin.
It is an incredibly orderly city, symmetrically designed, commuting is very efficient, the streetscapes are well-manicured and there’s an abundance of greenery and natural landscapes.
A couple of interesting quirks include that advertising billboards are prohibited, as are solid front fences on homes.
Canberra has a tradition of naming its suburbs and streets after past Prime Ministers (Deakin, Watson, Fisher, Cook, Hughes, Curtin, Fadden and most recently, Whitlam).
Arguably Canberra’s biggest ever achievement is its globally admired town planning.
Whereas most other Australian cities address population pressures with a butcher’s mallet (denigrating former A-grade neighbourhoods with higher density construction), Canberra is cleverly designed to accommodate multiple generations of urban growth.
The various designated residential precincts across Greater-Canberra are cleverly separated by parcels of undeveloped greenspace, thereby minimising urban density and creating pathways for future urban growth.
That said, infill development through new townhouse projects is part of the ACT government’s new housing strategy (sadly).
Given the unique nature of Canberra’s come-and-go government workforce (and international students), and to minimise urban sprawl, this century has already produced large volumes of apartment developments.
Sharing some of her local knowledge with Propertyology, Claire Corby explained that several apartment complexes constructed over the last 10 to 20-years had major structural defects.
Across the last quarter of a century, only 1 out of every 3 new homes built in Canberra were the traditional Aussie house with a yard.
A high portion of apartments are in designated high-density districts such as Molonglo, North Canberra, South Canberra and Canberra East.
Official data confirms that homeownership rates are noticeably lower in the high-density jurisdictions than the outer suburbs, where freestanding houses are more common.
While those who live and work (or study) inner-city might walk or cycle, an overwhelming majority of Canberrans elect to use their own car for all of their transport needs.
A small portion use the bus system.
In recent years, the staged introduction of light rail has helped transport a portion of Canberra’s fast-growing population to and from the city centre to suburbia.
The $675 million Stage 1 opened in 2019 (a 12-kilometre stretch from the CBD to the outer-northern district of Gungahlin.
An additional $4 billion has been committed for Stage 2A (currently under construction) and Stage 2B, which will connect the southern district of Woden to the CBD by 2033.
Fun Facts
- Population: 28,000 in 1954 (Australia’s 18th largest city at the time, meaning Canberra was smaller than Broken Hill NSW, Geelong VIC and Rockhampton QLD)
- Education: 24% have a university degree
- Workforce: 50% gov employed (public admin, health, safety, education)
- GRP: $25.6 billion in 2023/24.
- Wages: $13 billion in wages paid directly by the federal government to 115,000 Canberra residents in 2023/24 (41 percent of the workforce)
- Property taxes: circa $2 billion in 2023/24 (land tax, stamp duty and property rates)
- Visitor Economy: $3 billion revenue (2023/24)
- Airport: 2.8 million passengers (2023/24)
- Sheep: surrounding regions are among Australia’s highest sheep populations. Goulburn, Young, Deniliquin and Wagga Wagga are major producers of lamb meat, while Yass is a major Marino wool producer
- Homeownership: 67 percent (2021 Census)
Demographic statistics suggest that Canberra has limited appeal as a lifestyle location for retirees.
Only 30 percent of its population is aged 50+, significantly behind the national average of 35 percent, and well short of noted lifestyle hotspots such us Port Macquarie (49 percent).
Evolution
One of this country’s newest cities, the decision to develop Canberra was born out of many years of political debate over whether Sydney or Melbourne should be the nation’s capital. As a compromise to appease both states, it was decided directly prior to Australia’s Federation to establish a ‘neutral’ seat for a new federal government.
Early candidates to become Australia’s capital were the established townships of Albury, Orange, Armidale and Tamworth. It was eventually decided to develop a brand new, purpose-built city, with the site eventually agreed upon in 1908.
A vast open field in New South Wales (used for sheep grazing) was designated as the Australian Capital Territory. For the next 80-years, administrative power over the ACT laid with the Prime Minister (delegating specific responsibilities to federal government departments and ministries).
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Canberra’s name is derived from the indigenous word Kamberri, meaning “meeting place”.
An international tender to design the city was awarded to American architects, Marion and Walter Griffin, ahead of Canberra officially being founded and development commencing in 1913.
Meanwhile, the bureaucrats agreed that Melbourne would be Australia’s ‘temporary’ national capital and base for the federal government.
Gradual urban development saw Canberra’s population increase to 5,000 by 1923. At that time, Sydney and Melbourne’s respective populations were 950,000 and 800,000.
The federal politicians and departmental staff did not relocate to Canberra until after construction of Parliament House was completed in 1927.
Canberra building heights were originally limited to 2-storeys.
As with every other capital city, major urban expansion ramped up in Canberra directly after WW2.
Not too far from Canberra, construction of Australia’s biggest ever infrastructure project, Snowy Mountain Scheme, commenced in 1949.
With a dire shortage of skilled labour and a national security focus on ‘populate or perish’, approximately 60,000 10-Pound Poms and European migrants were relocated to this region to build a series of dams, tunnels, roads, power stations and an integrated irrigation system across south-east NSW.
Whilst the Snowy Mountain Scheme project took 23-years to complete, many of the migrants permanently settled in the region.
By 1954, Canberra’s population had doubled in just 7-years to 28,000 people.
But the homeownership rate was just 22 percent, meaning that 8 out of every 10 homes were rented. A compulsory home deposit of 30 percent or higher was a major hurdle.
Given the development of Canberra began well after the Gold Rush era, Canberra was deprived of the beautiful, historic buildings from the 19th and early 20th century.
Many of Canberra’s biggest urban structures have a rather ‘sterile’ façade, which is indicative of Canberra’s primary purpose – an institution for politicians and departmental staff.
Situated in the geographic centre of Canberra, development of the 11-kilometre-long manmade Lake Burley Griffin was completed in 1964.
At that time, Canberra’s median house price was $17,000. Solid brick homes in the desirable Canberra suburb of Red Hill sold for circa $25,000. Fast forward 60-years, the median house value of Red Hill is $2.1 million.
Related article: Why has Sydney real estate always been expensive?
On Australia Day in 1971, a major flash flood in Canberra killed 7-people and caused widespread property damage to the community.
Canberra is just as vulnerable to natural disasters as any other city. Major bushfires (2003 and 2019), a serious hailstorm (2020) and flash floods (1971 and 2019) are notable unavoidable tragedies of the past.
Greater-Canberra finally became a self-governed jurisdiction in 1989, when the position of Chief Minister was created.
From 1989 through to now, the Labor government has been in power for 28 of those 36-years (or 78 percent of the time). And the last non-Labor leader of the ACT was way back in 2001.
Essentially, the role of the Chief Minister of ACT is like combining the power of a state Premier with all of a state’s mayors.
A story in the Canberra Times in August 1990 refers to Canberra’s median house price of $116,000, home loan interest rates of 17 percent, annual inflation of greater than 7 percent, Sydney’s property market in a big downturn, and Brisbane enjoying boom conditions.
By mid-1991, Australia was in recession – the third since 1974. But, despite home loan interest rates being between 10 to 20 percent and inflation of 8 to 15 percent throughout that 17-year period, the median house value of Australia’s combined capital cities had increased 5-fold (from $25,000 to $130,000).
A significant milestone was reached in 1995 when Canberra’s population eclipsed 300,000.
Over the 25-years since the start of this century, Canberra’s population growth rate of 51 percent was superior to Sydney’s (39 percent) and inferior to Brisbane (65 percent), Perth (60 percent), regional WA (56 percent), Melbourne (54 percent) and regional Queensland (52 percent).
Related article: Population patterns across Australia
‘Natural causes’ (births and deaths) was the biggest contribution, adding 79,350 to Canberra’s total population growth across that period. Overseas migration added 62,189 while just 6,156 came from internal migration over the last 25-years.
Radio celebrity Mick Molloy, actress Sigrid Thornton and Mia Wasikowska, global basketball sensation Patty Mills, GWS Giants AFL star Tom Green, and Nick Kyrgios (pro tennis player) are among the most famous people from Canberra.
** proudly written by Simon Pressley without an ounce of that ChatGPT nonsense **
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