Canberra real estate expected to heat up in 2016

By Kelly Emmerton ·

Property experts in Canberra have predicted that the 2016 market will be a strong one, with both buyer interest and demand for rentals steadily increasing, reported.

Last year, the market began to pick up after a long flat period, with the median house price rising to $613,750. Over 6,500 homes were sold throughout the year, breaking 25 suburb records, with the highest sale price for the year coming in at 3.7 million for a seven bedroom home in Forrest.

"The Canberra market tends to be counter-cyclical," LJ Hooker Manuka principal Stephen Thompson told the website. "We had a flat three-year period, while Sydney had extreme growth. It's now our time and I think it could be one of the strongest years we've had in decades."

Thompson believes that increased demand for inner suburb apartments may be one of the biggest trends this year. "Younger couples who would have wanted to buy a larger home further out in the past are looking at apartments for the same price, with the benefits of inner-city living."

There is also demand for single-level homes suitable for retirees, and family homes remains a highly competitive market, due to high interest and a shortage of homes.

RELATED: First home buyers - what you need to know

In November last year, 9.9% more Canberrans borrowed money to purchase a home, reported, with an average loan price of $349,100. But with the market projected to steadily increase going into 2016, and interest rates currently low, anyone looking to borrow might want to look at doing so early in the year, director Shane Killalea at Peter Blackshaw Real Estate Woden and Weston Creek told

Although the prediction of a good year for Canberra property is widespread among experts, it often comes with a reminder that Canberra is always sensitive to the actions of the federal government, and that the budget deficit may have its effects on the property market. Still, the outlook for Canberra property in 2016 is an optimistic one, expecting growth in all suburbs.

Are you looking for a mortgage to buy your dream home? Check out Mozo’s home loan comparison hub to find the most competitive deals in the market.

Home loan comparisons on Mozo - page last updated October 17, 2020

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.

I want to borrow


  • 2.54% p.a. variable

    2.81% p.a.

  • mozo-experts-choice-2020

    2.48% p.a. variable

    2.50% p.a.

  • mozo-experts-choice-2020

    2.09% p.a.
    fixed 2 years

    2.98% p.a.

  • mozo-experts-choice-2020

    2.34% p.a. variable

    2.34% p.a.

  • Hot DealUp to $1,500 cash back on refinances (T&Cs apply)


    2.29% p.a. variable

    2.32% p.a.

Picture of Steve Jovcevski

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

**Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loans Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.