Last updated on September 4th, 2023
best suburbs to invest in canberra
Key Takeaways
- As the capital city of Australia, Canberra provides a solid financial situation, a thriving job market, and a great quality of life. Thanks to this, real estate investors are able to earn a nice passive income through rental properties.
- Discover the benefits that real estate investors have when investing in rental properties around Canberra.
- The 10 most profitable suburbs in Canberra ACT are revealed! We also include their recommended property types & corresponding Airbnb data.
Introduction
Nestled at the northern tip of the Australian Alps lies the mighty capital city of Australia, Canberra. Thanks to its great livability conditions, recreational facilities, and fascinating culture, the city has become one of the best cities to live, study, and work in!
Canberra is a place where impressive architecture and nature are mixed together harmoniously, offering stunning views and iconic landmarks. It’s a vibrant city with rich history, great museums & art galleries, breathtaking natural wonders, and wine regions.
Airbnb revealed that Australia ranks 7th place globally as a country with the highest percentage of Superhosts. It also mentioned that Canberra is one of the most hospitable Airbnb destinations in Australia along with Mornington, Geelong, Adelaide and Gold Coast. For this reason, we already have an idea that visitors love to rent an Airbnb when visiting the city! In addition, this city is also one of the top markets with the highest occupancy rates in Australia.
In this blog, we’ll reveal the best suburbs to invest in Airbnb in Canberra ACT including some of the expectations for real estate investments in this city. Continue reading to learn more!
Reasons to invest in rental properties in Canberra region
Investing in rental properties in Canberra can allow you to earn a good passive income because it offers attractive investment opportunities that ensure your return on investment! But what are the main reasons why investors should consider investing in Canberra?
Check out some reasons why investing in an investment property in Canberra is a profitable idea:
Great living conditions
Canberra is one of the most liveable cities in the country with a high household income, top-quality amenities, great infrastructure, and a strong job market. The city is also deemed as of the safest cities in the world!
Canberra is home to prestigious universities like the Australian National University and the University of Canberra. There are also renowned research institutions such as the Australian Academy of Science, the Australian Institute of Sport, and the Commonwealth Scientific and Industrial Research Organisation.
Strong financial situation
Canberra is among the fastest-growing cities in Australia with a solid and flourishing economy. The city is a leading center of business innovation, research, academics, government, and more! There’s a bright future for Canberra’s economic growth. nd thanks to this, more people are considering relocating to the city, which puts its real estate market in a positive light.
Australia’s capital city also has a strong labor market with a low unemployment rate of 3.5% as of March 2023. This is lower than the national average. The leading economic sectors in Canberra are renewable energy, finance, ICT, aerospace, digital commerce, and public administration & safety.
Wide variety of leisure activities
Canberra is home to outstanding open-air areas, impressive architecture, rich culture & history, as well as intriguing wildlife and breathtaking nature. So we can all agree that it has something for everyone by offering the best of both worlds!
The Australian capital has a wide array of leisure opportunities that locals and visitors alike can choose from. In Canberra, you can discover the country’s history while exploring museums and national landmarks, visiting impressive art galleries and exhibitions, or even attending live events and festivals! You can also discover Canberra’s great dining scene. Enjoy exquisite wine in one of its wineries. Or if you prefer a cold beer, there are some top-tier breweries!
On the other hand, you can also reconnect with nature by visiting one of ACT’s parks and natural reserves like the Tidbinbilla Nature Reserve, Namadgi National Park, and Molonglo River Reserve among others. Bonus: You can also meet Aussie animals!
Is Airbnb Profitable in Canberra ACT?
Take it easy! Airbtics confirms that investment properties in Canberra are financially rewarding. Yet, investors like you should consider other factors that can maximize the level of profitability such as their property type and location.
Based on Airbtics’ data, an Airbnb host can expect an average annual revenue of A$53,242 and a median occupancy rate of 90% for operating a 1 bedroom property in Canberra.
But if you’re still hesitating over the idea of owning a rental property, you can start your journey by doing rental arbitrage, which is a legal way to earn passive income with a minimal budget. Other than that, it’s also important to consider the Airbnb Rules in Canberra so that you can run your listing smoothly.
Top 10 Rental Markets in Canberra ACT
Canberra is the largest Australian inland city, with over 25 suburbs. Considering that each of them offers different profitability, it can be a challenge to choose the best location to buy an investment property in ACT.
Check out the best suburbs to invest in Canberra ACT that are highly recommended for rental properties:
1. Canberra CBD
- Total Number of Airbnb Listings: 117
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$675,000
- Airbnb Annual revenue: A$82,259
- Gross rental yield: 12.19%
2. Barton
- Total Number of Airbnb Listings: 22
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$700,000
- Airbnb Annual revenue: A$82,159
- Gross rental yield: 11.74%
3. Braddon
- Total Number of Airbnb Listings: 76
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$622,000
- Airbnb Annual revenue: A$76,552
- Gross rental yield: 12.31%
4. Turner
- Total Number of Airbnb Listings: 25
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$653,000
- Airbnb Annual revenue: A$76,259
- Gross rental yield: 12.68%
5. Griffith
- Total Number of Airbnb Listings: 32
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$659,000
- Airbnb Annual revenue: A$63,959
- Gross rental yield: 9.71%
6. Kingston
- Total Number of Airbnb Listings: 81
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): A$500,000
- Airbnb Annual revenue: A$61,368
- Gross rental yield: 12.27%
7. Reid
- Total Number of Airbnb Listings: 31
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): A$599,000
- Airbnb Annual revenue: A$60,590
- Gross rental yield: 10.12%
8. Belconnen
- Total Number of Airbnb Listings: 27
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): A$399,000
- Airbnb Annual revenue: A$57,366
- Gross rental yield: 14.38%
9. Phillip
- Total Number of Airbnb Listings: 28
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): A$437,750
- Airbnb Annual revenue: A$53,228
- Gross rental yield: 12.16%
10. Dickson
- Total Number of Airbnb Listings: 34
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): A$450,000
- Airbnb Annual revenue: A$43,554
- Gross rental yield: 9.68%
Conclusion
In summary, rental properties in Canberra offer promising investment opportunities to real estate investors. There are plenty of profitable suburbs that guarantee the best rental returns. This is why we recommend making use of Airbtics’ short-term rental estimator so that you can maximize your gains.
While discovering the best suburbs to invest in Canberra ACT is an excellent way to start your investment journey, we encourage you to go further! Make use of the Airbnb analytics tool so that you can make data-based decisions!
