Canberra prices climb as incentives fuel demand

First-home buyer numbers are rising across Canberra, with housing finance for this group now accounting for 23.3 per cent of all loans, well above the decade average of 18.8 per cent.

Domain data shows that 60.8 per cent of buyer searches are now focused on properties priced between $500,000 and $1 million.

Domain chief of research and economics Dr Nicola Powell said several key trends were expected to shape the ACT property market in the 2025–26 financial year.

“This includes lower borrowing costs that will unlock buyer capacity, slowing but solid population growth, and accelerated first-home buyer government support,” she said.

As affordability tightens across the capital, first-home buyers are increasingly being pushed to Canberra’s outer regions in search of value.

Tuggeranong remains the most affordable district for house hunters entering the market, with a median house price of $875,000.

However, prices have lifted, and there is now limited availability of three-bedroom homes under the $750,000 threshold that are eligible for government support.

Jonny Warren from Jonny Warren Properties said government incentives, such as the First Home Guarantee, which has a $750,000 price cap in the ACT, are driving demand by focusing buyers on properties within that limit.

“We recently sold a property at 31 Abercrombie Circuit, Banks, in the Tuggeranong precinct for $746,000,” he said. “It was marketed at $699,000-plus and drew 13 first-home buyers before it sold.”

Agents report that Belconnen, once an affordable option for entry-level buyers, is becoming increasingly out of reach. Its current median house price sits only slightly higher than Tuggeranong’s at $890,000.

Luton Properties’ Nick Paine said Belconnen was definitely on the move, with most buyers now second or third-home purchasers upgrading to larger homes.

Warren echoed this trend, noting continued activity from first-home buyers despite increasingly limited opportunities in the sub-$750,000 range.

“We just listed the three-bedroom house at 3 Holtermann Place, Charnwood, for offers over $649,000, and within 24 hours we had 27 enquiries,” he said. “Most of them were from first-home buyers still actively trying to break into the market.”