Inside Canberra’s split property market

Canberra’s housing market is a tale of two cities, displaying the most extreme contrasts between what sellers are asking and what buyers are hoping to pay across all Australian capitals.

The Domain Matching Demand 2025 Report has revealed a startling disparity, particularly for those seeking an inner-city lifestyle.

The biggest differences lie within the inner ring for detached houses, where the premium is a six-figure price tag as house listings fly onto the market at a $1.8 million median. 

However, buyers are setting their search limits far lower, with a median budget of just $1.1 million, resulting in a $712,000 gap. This is the largest recorded nationally, reflecting the high value placed on central detached homes in a compact metropolitan area.

In the middle suburbs, house prices move much closer to alignment. Listings and searches both sit at approximately $1 million, narrowing the gap to around $25,000. 

By the outer ring, the tables turn: listings average $875,000, yet eager buyer searches push the median to $950,000, creating a negative $75,000 gap. 

The townhouse market shows a similar pattern – high inner-city price premiums transitioning to buyer-led conditions farther from the centre.

Inner-ring townhouse listings sit at $1.3 million, compared with search medians of $900,000, while the middle ring experiences a $70,000 gap as buyers show they are willing to spend up to $800,000 when listings average about $730,000. 

The report shows Canberra units as the most buyer-aligned dwelling type overall. Buyers willing to compromise on location or dwelling type gain significant negotiating power, but those chasing an inner-city detached house face a seven-figure hurdle.