Top Suburbs for Rental Yield in ACT
When talking about investment properties, Canberra isn’t always at the forefront of the conversation. However, some investors are seeing potential with the recent growth in population and a slight increase in property values. If you’re thinking about investing in the area, you need to know the lay of the land first. Here are the best-performing suburbs for rental yield in Canberra:
A quick overview of Canberra real estate
The Bush Capital is quickly becoming a top choice for many investors looking for more affordable alternatives to the Melbourne and Sydney markets. The country’s capital offers stability, solid rental yields, and good property values. Although it doesn’t have the largest median home values compared to other capital cities, it’s still among the top performers for both houses and units.
According to Cotality’s latest Home Value Index report, the median value of all dwellings in Canberra is $855,663 and a gross yield of 4.1%. The capital city has the third-highest property values behind Sydney and Brisbane. It also has the fourth-highest gross yields after Darwin, Hobart, and Perth.
In terms of property value growth, Canberra is lagging behind other capital cities. Annual growth has decreased (-0.7%). However, there is a slight improvement when looking at monthly and quarterly property value growth, which is at 0.4% and 0.5%, respectively (starting from January 2025 to May 2025).
Highest gross rental yield suburbs for houses in Canberra
According to Cotality’s June 2025 Home Value Index, the median house value in Canberra is $975,387. The annual value for houses has decreased and is at -0.5%. But when looking at monthly growth, there's a slight uptick of 0.5%. Quarterly home values have also risen by 0.8%. The total returns are at 3.4% with a gross yield of 3.8%.
If investing in houses, make sure to look at the potential yields of a specific area, as it can change significantly depending on the suburb. As of December 2024, yields were:
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Belconnen | Australian Capital Territory | 6.0% | $571 |
| Greenway | Australian Capital Territory | 5.3% | $608 |
| Charnwood | Australian Capital Territory | 4.7% | $599 |
| Holt | Australian Capital Territory | 4.6% | $616 |
| Banks | Australian Capital Territory | 4.4% | $724 |
| Isabella Plains | Australian Capital Territory | 4.4% | $627 |
| Strathnairn | Australian Capital Territory | 4.3% | $721 |
| Macgregor | Australian Capital Territory | 4.3% | $620 |
| Gordon | Australian Capital Territory | 4.2% | $766 |
| Latham | Australian Capital Territory | 4.2% | $610 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Most of the top-performing suburbs in Canberra have rental yields between 4.2% and 4.7% save for Belconnen (6.0%) and Greenway (5.3%), which have noticeably higher rental yields. The median rental values are also varied, even though the rental yields are within a similar range.
Highest gross rental yield suburbs for units in Canberra
In terms of growth, units in Canberra aren’t faring better than houses. The median value for units in the city is $594,769, which is a small dip from last month (-0.1%) and the previous quarter (-0.6%). When looking at annual values, there’s a -1.4% change. Even with slight falls in unit values, total returns (3.6%) and gross yields (5.3%) are still doing well.
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Gungahlin | Australian Capital Territory | 6.2% | $530 |
| Belconnen | Australian Capital Territory | 5.8% | $544 |
| Franklin | Australian Capital Territory | 5.8% | $556 |
| Harrison | Australian Capital Territory | 5.8% | $562 |
| Lyons | Australian Capital Territory | 5.8% | $471 |
| City | Australian Capital Territory | 5.7% | $629 |
| Phillip | Australian Capital Territory | 5.7% | $539 |
| Reid | Australian Capital Territory | 5.7% | $583 |
| Braddon | Australian Capital Territory | 5.6% | $595 |
| Wright | Australian Capital Territory | 5.6% | $569 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Rental yields for units in Canberra are higher compared to houses. There’s also a 0.6% difference in yield percentages between the first and last suburbs on the list. This may be good news for investors who want to take advantage of high-performing suburbs, as their locations aren’t limited to a specific area and can branch out more.
Tips on getting the right investment property in Canberra
First and foremost, you need to find the perfect location. To find the best suburb to invest in Canberra, you need to do your research. This means understanding the local market, demographics, and other pertinent information about the area’s real estate. Looking for all the important data on a suburb can be time-consuming, especially since, most of the time, you’ll be looking at more than the area.
You can make market research easier by getting a free suburb report at loans.com.au. These reports can offer insight into a specific suburb. You’ll get details such as median prices, market data, demographic information, and the like.
Financing your investment property purchase
Before anything else, you need to find a good investment home loan. Ideally, something with low rates and good loan features so you can save money on your home loan. At loans.com.au, we offer a wide variety of investment property loans fit for a range of investors.
For more information, get in touch with our friendly lending specialists by calling 1300 519 212. Or apply online today and see if you qualify!
Find out in under 2 minutes if you qualify for one of our low rate home loans.
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