After three years of consistent growth, Canberra has set itself apart from smaller capital cities, joining Sydney and Melbourne as Australia’s most valuable property markets.

McGrath Estate Agents founder John McGrath said Canberra achieved a median house price of above $1m for the first time over the FY22 — by the end of the year, dwelling values across Canberra went up 40% higher than pre-pandemic levels.

“This makes the nation’s capital exceptionally well-placed to weather the economic challenges ahead,” he said.

“With significant new wealth amongst homeowners, and locals earning Australia’s highest average incomes, Canberrans are well equipped financially to cope with rising inflation and interest rates.”

Meanwhile, Canberra’s median apartment values increased significantly in FY22, up 18.3% to $629,531 — this was largely a result of record demand from first-home buyers and investors amid an undersupply.

“The undersupply might seem surprising given the large amount of medium-density residential development occurring in the nation’s capital,” Mr McGrath said.

According to McGrath Report 2023, here are Mr McGrath’s top suburb picks for 2023:

Canberra investment hotspots 2023


O’Connor borders the lush bushland on the edge of the CBD in Canberra’s inner north.

Upgraders from all over Canberra recognised the value of O’Connor’s unique bush/city lifestyle and adored local village during the COVID-19 pandemic.

“O’Connor is gentrifying as nature-lovers buy 1950s knockdowns to build architecturally significant, energy efficient homes that pay homage to the beautiful natural surroundings,” Mr McGrath said.

“Generous blocks of 850-1,000 square metres allow for extras like pools and backyard studios used as home offices.”

Denman Prospect

Situated in the Molonglo Valley, Denman Prospect is one of the few suburbs that still offer vacant blocks.

Mr McGrath said Terry Snow, a local billionaire whose family company built Canberra Airport, is developing the suburb.

“Snow is known for his highly curated developments and unique placemaking attitude as a proud Canberran — as a result, Denman Prospect is being built to meticulous standards with lots of sustainability practices,” he said.

Denman Prospect is Australia’s first suburb with a minimum solar power requirement for every home. It also has a booming town centre.


Forde is perfect for those seeking quiet and tranquillity, with its tight-knit and friendly multicultural neighbourhood.

Initially known for its popularity with young families, Forde was privately developed 14 years ago and is now known for its green spaces.

It adjoins Mulligans Flat Nature Reserve and has numerous walking trails — a common sight would be kangaroos hopping through front yards.

Belconnen Town Centre

The redevelopment of Belconnen Town Centre under a master plan released in 2016 is underway, transforming it into a contemporary lakeside community and commercial hub.

“The plan incorporates outdoor dining at Emu Bank, land release and development around Lake Ginninderra, walking and bicycle paths, improved landscaping and high-quality residential apartments,” Mr McGrath said.

Meanwhile, potential buyers can expect the opening of the European market hall called Capital Food Market in 2023, repurposed from the popular Belconnen Markets.

Woden Town Centre

Woden Town Centre is transitioning from old to new — luxury apartment towers and lifestyle precincts are rising from the sites of rundown commercial buildings.

The Shard and The Melrose, for instance, will have spacious designer one-, two-, and three-bedroom homes with high-end finishes.

On top of this transition, Woden Town Centre will be included in the approved second stage of the light rail network, boosting its accessibility.

Your Investment Property’s Suburbs to Watch 2023 series:


Photo by rhindaxu on Unsplash.