Where Buying Now Beats Renting: The Canberra Suburbs Flipping the Affordability Equation

For the first time since 2020, it’s now cheaper to buy than rent in several parts of Canberra, with units in Gungahlin and parts of Belconnen topping the list as weekly rental rates top mortgage costs for entry-level buyers.

This flip in affordability comes as Canberra’s median rent for a two-bedroom apartment reached a record $620 per week in June, according to data from Domain. With vacancy rates stuck near 1% and public servant demand steady, rents have surged by 11% year-on-year, far outpacing wage growth and placing many tenants under fresh financial stress.

Where the Numbers Stack Up for Buyers

At Infinity Towers on Anthony Rolfe Avenue, Gungahlin, advertised rents for a standard two-bed, two-bath unit this week sat at $610 per week. Yet, the same floor plan has been exchanging hands for just over $530,000. A buyer with a 20% deposit faces estimated weekly repayments of around $570 with a 5.8% variable rate – lower than what tenants are forking out for comparable apartments.

In Belconnen, the story is similar. The Sentinel at 97 Eastern Valley Way, within walking distance of the University of Canberra and Westfield, lists rents north of $600 weekly for two-bedroom units. Yet recent sales at $495,000 mean mortgage repayments for owner-occupiers come in closer to $530 per week. Strata levies and council rates add another $110, but many renters face steep quarterly increases with leases up for renewal, compressing the gap even further.

The Data Driving the Shift

CoreLogic’s May 2026 figures highlight the driving forces behind the change: ACT unit prices have remained steady since January, but rents have climbed sharply. In places like Gungahlin, the average unit rent is now 7% higher than a year ago. According to the local buyers’ agency HomeGround Real Estate, two-thirds of their first-home inquiries in the past month have been from renters running the numbers – a notable shift from the investor-fuelled demand of 2022. Meanwhile, Canberra’s overall auction clearance rate hovers at 65%, giving patient buyers a rare upper hand in negotiations.

Canberra’s established house market still sits out of reach for many first-time buyers, with the citywide median topping $835,000. However, targeted government schemes such as the ACT First Home Buyer Assistance are filling some of the affordability gap for buyers in the north. In Amaroo and Franklin, several two-bedroom apartments listed under $500,000 have sold within a week – frequently to former tenants making the leap to home ownership.

For would-be buyers, financial advisers recommend a close look at not just mortgage repayments but also ongoing body corporate and maintenance expenses. "For property under $600,000, right now the maths often works for owner-occupiers, especially in new-build units around Gungahlin Marketplace or Belconnen Town Centre," says a director at a Civic accounting practice. Practical advice for those on the fence: crunch the numbers, check for government incentives, and act quickly in suburbs with rapidly rising rents. With rental competition expected to intensify further this spring, the window for affordability in these suburbs may not stay open for long.