Buying an apartment in Canberra

Whether you’re a first-time buyer or seasoned investor, Canberra’s diverse real estate landscape offers opportunities to build a secure and bright future in one of Australia’s most liveable cities. And with house prices rising faster than apartments in the March quarter , it’s time to take a closer peek at what could be an opportunity.

In this article we look at the advantages of buying an apartment in the nation’s capital - and some of the key considerations to make.

Is Canberra good for property investment?

According to ACT Treasury , Canberra’s population will swell to around 785,000 in 2060, from 470,232 today. That equates to a 1.4% annual increase, with overseas and interstate migration driving the growth due to the robust job market in Government, Defence and Education.

This provides Canberra’s property market with a steady demand for housing, offering stable capital growth and investment potential. While prices vary based on location and property type, apartments provide a more affordable entry point compared to houses, making them ideal for first-time buyers and investors with a long-term mindset. 

Benefits of buying an apartment in Canberra

Of all the apartments for sale, how do you know which is right for you? Take the time to think about your priorities:

Lifestyle and convenience

• Canberra is regarded as a safe city with good infrastructure and quality of life. Make sure you choose a location with proximity to important lifestyle factors such as work, schools, restaurants and transport. 

Investment potential

• The rental yield is a key consideration for potential return on investment from rental income. Apartments in Canberra generally offer higher rental yields of 4.5% - 6%, compared to houses, especially inner-city locations.

• While rental yield is crucial for immediate returns, capital growth determines the long-term profitability. Canberra has shown steady growth over the years, driven by the stable economy and quality of life.

Tax write offs and incentives

• Negative gearing allows investors to offset the cost of owning an investment property against their taxable income - if these holding costs are higher than the rental income. This resulting loss can be used to offset your other taxable income. The more deductions you have, the more likely the loss on paper so you can negatively gear it against your other income.

• Another way to maximise the value from a property is through Depreciation . Of all the tax deductions available to property investors, depreciation is the second largest after Interest from the mortgage. A tax depreciation schedule will help substantiate and claim maximum deductions.

• When selling an investment property, capital gains tax (CGT) applies to the profit made from the sale. However there are CGT exemptions and concessions available, eg is the property is held for more than 12 months, you might be eligible for a 50% discount on the capital gain.

• The ACT Government offers a First Home Owners Grant to assist with purchasing or building a new or off-the-plan home. Also Stamp Duty Concessions are available for new and established homes, reducing upfront costs.

A stepping stone

• If you’re looking to break into the property market with your first purchase, an apartment can get you there - or provide the stepping stone you might need to one day enjoy a larger home. Read on for why sometimes, the best house is an apartment .

Key popular suburbs for apartment buyers 

While inner-city apartments will always attract a premium, there are key districts in Canberra that will always be popular. The northern suburbs are the ones to watch in terms of population growth, according to the ACT Government , which projects that a greater proportion of residents will be living there in 2060. 

Inner North

Some of the city’s oldest suburbs comprise the vibrant Inner North, including Turner, Braddon, Dickson, Lyneham and O’Conner. The ACT Treasury predicts that this area of Canberra will grow the most, gaining another 77,000 residents compared with today, as more infill high-density developments are built.

Belconnen

Good lifestyle appeal maintains Belconnen’s popularity, with the University of Canberra, Westfield and even Canberra City all in proximity. Including the Ginninderry development to its west, Belconnen is forecast to gain another 69,000 residents over 40 years.

Gungahlin

With infrastructure development and gentrification offering promising prospects, the suburb of Gungahlin is projected to grow by another 55,000. While further out at 14km from the CBD, it is becoming increasingly popular with young professionals migrating to a work-from-home environment.

Inner South

A perennial historic favourite, the leafy inner southern suburbs include Griffith (next to the boutique shops and restaurants of Manuka), Kingston, Forrest and Yarralumla. The area boasts great schools, excellent health care facilities and reliable public transport that makes it a breeze to leave the car at home and head into the nearby city.

Woden Valley

Little more than a ten minute drive southwest from Canberra’s CBD is the Woden Valley with multicultural suburb of Phillip. This area has experienced considerable growth and has all the right amenities with shops, entertainment and the Canberra Hospital.

Tuggeranong

By June 2026, the ACT Government expects Kambah and Gordon from the Tuggeranong district in Canberra’s south to be in the top ten ACT suburbs by population. The region is known for easy access to arterial roads, shopping centres, ample walking trails and nature reserves. Tuggeranong is only a 20min drive to Canberra City, 1.5 hours to the South Coast, and 2.5 hours to the snow fields. 

Buying an apartment off the plan

One way to get your foot in the door so to speak, is to buy an apartment off-the-plan. This involves purchasing a property that has not yet been built or is still under construction. It typically means paying a deposit upfront, with the balance due upon completion. Buyers are often attracted by the potential for capital gains before the property is finished, as well as the opportunity to customise certain aspects of the property. 

However, it comes with risks such as changes in market conditions, potential construction delays, and variations in the final product from initial expectations. Due diligence is crucial, including researching the developer's reputation, understanding the contract terms, assessing the location and future market trends, and seeking legal and financial advice to navigate complexities such as sunset clauses, financing, and ongoing costs like strata fees.

Independent Property Group offers some of the ACT region’s most sought after off-the-plan properties , with a focus on providing a diverse range of housing options to give more choice when it comes to choosing your new home or investment.

CHECKLIST FOR BUYING AN APARTMENT

• Find out how much you can borrow
• Choose desired area in the ACT
• Pick your priorities (location / sunlight / lift / garden)
• Have a budget and stick to it

The final word

Overall, buying an apartment in Canberra in 2024 presents a promising opportunity, driven by steady demand, attractive rental yields and potential tax benefits. While the market is attractive for both buyers and investors due to stable economic conditions, there is significant variation across suburbs, so we recommend you keep an eye on ongoing infrastructure development.

Talk to your local real estate agent to gain further insights into current market trends, upcoming developments, and potential returns on investment. Contact Independent Property Group today!