Canberra ranks third in land prices per square metre

Canberra has recorded one of the highest prices for land per square metre across the country but still remains an affordable alternative compared to Sydney or Melbourne, new data shows.

The latest Domain Price Per Square Metre Report found that Canberra was the third most expensive city in which to buy property based on land size – behind the two major state capitals – with a price tag of $1485 a square metre.

While Canberra retains a higher house price median than Melbourne, it offers greater value for money due to its much larger blocks.

Domain chief of research and economics Dr Nicola Powell said Canberra’s most expensive suburb was Coombs, with an average block size of 342 square metres and a price of $3211 per square metre.

“The most affordable suburb is Fraser at $851 per square metre with an average lot size of 1140 square metres,” she added.

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The report found that Canberra’s housing landscape mirrored the broader trend of shrinking land sizes attributed to densification and rising land premiums.

Powell said that while wages had grown incrementally over the past decade, up 27 per cent, over the same time, Australia’s house and unit prices had soared much more across the combined capitals, up 83 per cent and 38 per cent, respectively.

“The deterioration in housing affordability and home ownership rates highlights the importance of reviewing existing land-use policies and their efficiency and focusing on the essential objective of meeting all Australians’ housing needs,” she said.

“While price per square metre serves as a vital indicator of affordability, embracing urban density emerges as the cornerstone for ensuring that space remains accessible amid escalating housing challenges.

“As cities grapple with affordability issues, understanding the interplay between density and pricing becomes indispensable for policymakers and buyers alike.”