Canberra, coast or country? Top suburb hotspots to watch in 2026
After years of subdued conditions, Canberra’s housing market is poised to not only recover in 2026 but also scale new heights.
According to the Domain Forecast Report 2026, the city’s average house price is set to hit a record $1.18 million, up around $78,000 from current levels, with unit prices projected to reach $631,000.
So, which suburbs are the hotspots to watch over the coming year?
Several agents point to Canberra’s Inner South, but not necessarily the usual suspects, while agents operating in regions over the ACT border (which cater to Canberra workers or sea/tree changers) note that shifting lifestyle preferences are bringing these formerly quiet suburbs into sharper focus.
Quality and location draw buyers
Over the past nine to 12 months, agent Michael Morris of Hive Property says Griffith in Canberra’s Inner South has “come far in front of [heavyweights] Red Hill and Deakin” as a value proposition.
“I think post-COVID people want to get outside and be more active,” he says. “Griffith offers a spot where it’s a centrepoint next to Manuka, but it is still close to all the schools.”
Oumaya Escribe of Belle Property Canberra says Barton also presents an appealing package.
“Barton continues to stand out, with its mix of tightly held residential pockets, evolving apartment stock, proximity to the Parliamentary Triangle and strong owner-occupier demand,” she says.
While Barton shares much of the prestige and convenience of Kingston and Manuka, Escribe says it offers compelling value that’s appealing to all ends of the market – from young professionals and first-home buyers to downsizers and even investors – with strong short-term accommodation returns.
“Downsizers really like the location with the proximity to the lake, but not being right on it,” she says.
“From my experience, the build quality in Barton seems to be superior. I see fewer building issues. Some of the apartments have a bit more character, and they’re older, which tends to offer larger apartment sizes.”
The forecast report reveals Canberra remains Australia’s most affordable capital city when comparing home prices to household incomes. Morris and Escribe agree that, no matter where they look, Canberra buyers know precisely what they want and aren’t afraid to wait for it.
“Buyers have the money to spend and want to spend it on something high quality,” Morris says. “Our recent advice to vendors doing knockdown-rebuilds is to stop focusing on just bottom-line feasibility and actually create a quality product because people will pay for them if they’re there.
“I wouldn’t have said that 18 months ago. I would have said just build something that’s big and feels relatively nice and get it in the market as soon as you can. Now buyers are saying, ‘we can see the quality’s not there, we can see where they’ve cut corners’, and they just won’t buy them.”
Escribe says even first-home buyers have long checklists.
“I don’t think there’s urgency to just buy a place, it has to tick more boxes,” she says. “Buyers are much more educated and they do their own research. People aren’t settling for less than what they want.”
Finding value and community
Other buyers are finding value and an appealing lifestyle beyond the ACT border. George Southwell from Ray White Rural Canberra Yass says the hotspot to watch in 2026 is Yass, citing strong economic development and affordability as two growth drivers.
Major infrastructure projects are bringing an influx of workers to the region, while young families and professionals are also taking a closer look, particularly those with flexible work arrangements.
“I didn’t think Yass would ever be trendy, but it’s getting there,” Southwell says.
“Buyers are coming out for affordability. There are lots of young couples starting families or looking to start families. They want education [opportunities], they want affordable housing and they want a community and they’re coming out here and finding all three.”
According to the latest Domain data, the median house price in Yass is $720,000. For both live-in-owners and investors, Southwell says the numbers stack up.
“In Yass, you’re getting a 6 per cent return on your rental investment on average,” he says. “Then you’re getting capital growth of 4.5 to 5 per cent every year.
“I don’t know too many desirable places in Australia where you can live, educate your family, be 45 minutes from a major centre and get 5 per cent return.”
And it’s not all about the bottom line. Southwell says newcomers are quickly drawn in by the community feel.
“The run club every Saturday morning is hustling and bustling,” he says. “You walk down the street and [there are people wearing] activewear and they all go and get a coffee. That’s now commonplace in Yass.”
Affordable coastal pockets
On the South Coast, Dawn Mason from Ray White Batemans Bay, Moruya and Ulladulla says Moruya is one to watch, with the new stage four of the hospital project driving renewed interest.
She also highlights the ongoing popularity of coastal pockets such as Broulee, Tomakin, Mossy Point, Ulladulla and Malua Bay, noting some suburbs offer unexpected value.
“Some of the pricing in Malua Bay blows me away,” Mawson says. “You can get a really affordable holiday-type home there.”
She says buyers are focused on presentation and return potential, and anything priced under $800,000 is attracting intense demand driven by government grants that cut off at that threshold.
“There are a lot more people taking their money out of the bank and putting it back into bricks and mortar,” Mawson says.
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