Breaking Into Canberra’s Property Market: The Reality for First-Home Buyers

Buying your first home is an exciting milestone, but in Canberra, it’s not without its challenges. With rising property prices, high interest rates, and stiff competition, first-home buyers are up against significant hurdles.

The Challenge of Saving for a Deposit

According to Domain’s First Home Buyer Report 2025, a couple in Canberra aged 25 to 34 takes an average of five years and seven months to save for a 20% deposit. 

Dr. Nicola Powell, Domain’s chief of research and economics, explains, “This becomes even more daunting when home prices remain high relative to wages, compounded by a prolonged period of elevated interest rates and rising living expenses.”

Over the last five years, house prices across Australia have skyrocketed—entry-level houses are up 58%, while unit prices have increased by 27%. Inflation has risen by 20%, but wages have lagged behind at just 15%. This means that first-home buyers in Canberra are spending longer than ever just trying to get a foot in the door.

Canberra’s House and Unit Prices: What You Need to Know

House and Unit Prices in Canberra

• Entry-level house median price: $815,000 (+3.2% from last year, +40% in five years)
• Entry-level apartment median price: $462,000 (-1.7% from last year, +18.6% in five years)
• Time to save for a house deposit: 5 years, 7 months

Saving for a house deposit takes over five years, while for an apartment, it takes an average of three years and three months—a shorter timeline but still a big commitment. Despite the price difference, many first-home buyers still prefer houses over apartments.

Houses Are Still in High Demand

Jonny Warren from Jonny Warren Properties sees high demand for standalone homes.

“Standalone houses are in really hot demand at the moment,” Jonny says. “Over the past six weeks, I have seen so many first-home buyers trying to get into those sorts of homes. Every three-bedroom house we have had recently has had hot competition between first-home buyers.”

Most buyers are looking at areas like Tuggeranong and Belconnen, targeting homes priced at $750,000 or less—a price range that aligns with the Australian Government’s Home Guarantee Scheme.

The Reality of Mortgage Stress

While many first-home buyers are keen to secure a house, affordability remains a challenge. 

According to Domain: 

• House mortgage repayments: 46.7% of income (above 30% mortgage stress level)
• Apartment mortgage repayments: 26.5% of income (below mortgage stress level)

However, relief may be on the horizon. Powell notes that slower market conditions, potential price stabilisation, and expected interest rate cuts this year could offer some financial breathing room.

“However, the financial recovery will be gradual, compounded by ongoing challenges such as housing undersupply,” she adds. “Ensuring adequate and affordable housing is essential to shaping a more sustainable future for Australia’s housing market.”

Need Help Getting Started?

While buying a first home in Canberra isn’t easy, it’s still possible with careful planning, realistic budgeting, and leveraging government incentives. The competition is tough, but opportunities do exist—especially for those who are willing to explore apartments or emerging suburbs.

If you’re looking to break into the Canberra property market and need expert guidance, The Jonny Warren Properties team is here to help. Get in touch today and let’s find your dream home together.

📞 0438 867 822
📩 jonny@jonnywarren.com.au
💻 www.jonnywarren.com.au

Source: ‘Competing with a lot of deep pockets’: the reality of buying your first home in Canberra