Inside the ACT Apartment Boom: Are Investors Finally Returning to Canberra?

Canberra has long been viewed as a steady, low-drama property market, fuelled by a reliable public service workforce and consistent rental demand. However, over the past year, a new energy has emerged in the ACT housing scene, particularly within the apartment sector.

Driven by increased migration, lifestyle shifts, and a growing appetite for urban living, the territory is seeing a surge in apartment development. And now, after a cautious few years, investors are starting to circle back.

For those keeping an eye on Canberra real estate, this could mark the beginning of a new investment cycle worth watching.

What’s Driving ACT’s Apartment Boom

What’s driving the apartment boom in the ACT—and why are investors reconsidering their stance on Australia’s capital?

Rental Yields Are Ticking Up Across the Territory

One of the biggest drivers of renewed investor interest in Canberra apartments is the steady rise in rental yields. With rental vacancy rates remaining below 1% in many suburbs, apartments in inner-city areas such as Braddon, Gungahlin, and Phillip are attracting strong weekly returns.

At the same time, unit prices in these areas have remained relatively affordable compared to houses, making the value proposition particularly attractive for investors who want solid returns without overstretching their budgets.

Add to that the ACT’s relatively high median household income and consistent employment base, and it’s clear why Canberra real estate is once again landing on property portfolios across the country.

High-Density Living Is No Longer a Compromise

Once seen as a stepping stone to detached housing, apartment living in Canberra is becoming a preferred lifestyle choice, especially for younger professionals, downsizers, and interstate migrants.

Developers have responded with smarter, more liveable designs that prioritise natural light, balconies, energy efficiency, and shared amenities such as gyms and co-working spaces. This shift in perception has helped reduce the stigma around apartment investing.

What was once seen as a high-risk, low-reward strategy is now being reframed as future-focused, thanks to growing demand for compact, well-located, and low-maintenance homes in the heart of the city.

Infrastructure Growth and Urban Planning Are Driving Demand

The ACT Government’s long-term commitment to infrastructure development is also playing a significant role in shaping the apartment boom.

Light rail extensions, upgraded bus networks, and new civic hubs are boosting connectivity across the territory, particularly in growth corridors such as Gungahlin and Woden. This investment has made certain areas more attractive not just for residents, but also for property investors seeking long-term capital growth.

Access to transportation, schools, healthcare, and shopping precincts is increasingly driving buyer decisions, and apartments that meet these requirements are leading the charge.

Canberra’s Apartment Market Is Heating Up for a Reason

The numbers don’t lie—Canberra’s apartment sector is on the rise, and investors are taking notice. With competitive rental yields, lifestyle-driven demand, and continued urban growth, the capital is offering a stable, lower-risk entry point for property investors looking to re-enter the market.

For anyone considering a move into Canberra real estate, the apartment boom could represent a golden window of opportunity—if you know where to look and how to act.

Why Canberra Could Be Your Next Move

If your next move is to Canberra, you’ll be pleased to know that in 2024, it ranked second best for quality of life. When deciding which places rank highly for quality of living, healthcare, education, housing affordability, and income are considered.

In Australia, Canberra has higher average weekly earnings than the national average, and contrary to popular belief, it has a diverse economy. It’s not all pubic sector work. Other sectors, such as technology, tourism, professional services, international education, and healthcare, make up the majority of employers.

Getting a higher education in Canberra is sought after as it is home to Australia’s top University – ANU. It may be why a third of Canberra’s population was born overseas. This diversity fosters cultural activity and gives rise to innovative startups.

However, if you’re into the great outdoors, Canberra doesn’t disappoint. It is close to ski fields (who would have thought), nature walks, and Lake Burley Griffin for water activities.

Housing affordability is a key consideration for young families and anyone keen to get a foot on the property ladder.

Did you know Canberra is nearly 30% more affordable than Sydney? Do people live in Canberra and commute to Sydney? Yes; however, a stint of remote work is needed to make it worthwhile.