The little-known leafy Australian suburb where house prices are surging: ‘Excellent value and lifestyle’
A little-known suburb in the inner south of Canberra has just been named the ACT’s best performer for 2025.
Narrabundah was singled out in Domain’s latest House Price Report, after recording a 42.7 per cent increase in median house price over the past five years.
According to the report, the 2025 median house price in Narrabundah is $1.47 million – up 17.1 per cent year on year.
Until recently, the suburb lived in the shadows of its more high-profile Inner South neighbours, like Griffith, Red Hill and Kingston.
But with its location just under eight minutes’ drive from Parliament House and 15 minutes from Canberra’s city centre, it was inevitable the area would eventually pique buyers’ interest.
The rapid price growth in Narrabundah doesn’t come as a surprise to local Canberra real estate agent Tom Wiggins from Hive Property.
‘The area has experienced strong recent growth, primarily due to its price range relative to the rest of the Inner South suburbs,’ Tom told Daily Mail.
‘Buyers see it as excellent value for money, particularly given its proximity to the Parliamentary Triangle, access to some of Canberra’s top schools, and strong lifestyle amenity and overall quality of life.’
Canberra real estate agent Tom Wiggins from Hive Property cited Narrabundah’s combination of an ‘Inner South location without the premium price tag’ as a driving factor behind recent price growth
Narrabundah is located in the Inner South region of Canberra and a short drive from the city centre and Parliamentary Triangle
The real estate agent, who has several current listings in the suburb, explained that this combination of an ‘Inner South location without the premium price tag’ is extremely attractive to home buyers.
So why the sharp price increase in Narrabundah compared to other inner city suburbs of Canberra? Tom explains that its likely because the area previously ‘carried some historical stigma’ – but that this is now less of a concern for new, younger buyers.
‘The area continues to attract primarily young couples, some with children and some without, as well as professional singles,’ he explained.
Canberra real estate agent Tom Wiggins from Hive Property offered an explanation for the rapid price increase in Narrabundah
‘These buyers are typically aspirational, looking to secure a foothold in the Inner South, with the suburb presenting as one of the more affordable options that offers both lifestyle appeal and future growth potential.’
Two of Hive Property’s current listings are in Narrabundah: a four-bedroom original full-brick home at 2 Caley Crescent, and a modern four-bedroom, newly renovated house with a pool at 4 Johnston Street. The former, Caley Crescent property, is listed for sale with an asking price over $1.55 million, while the latter Johnston Street abode is headed to auction with a guide in the mid to high $2 millions range.
The realtor says these listings are typical examples of the broad range of properties now available in Narrabundah.
‘The area primarily offers cottages – typically three-bedroom homes – along with more affordable detached options,’ Tom explains.
‘Entry-level houses can start around the $1 million mark, with prices rising into the mid-$1 millions for homes in premium pockets or those offering larger blocks, renovations or superior locations.’
One of Hive Property’s current listings in Narrabundah is this modern four-bedroom, newly renovated house with a pool at 4 Johnston Street
One of Hive Property’s current listings in Narrabundah is this four-bedroom original full-brick home at 2 Caley Crescent
Because Narrabundah was previously off the radar for past generations of Canberra buyers, there’s still enormous value to be found.
‘Buyers are particularly drawn to the beautiful tree-lined streets, established character, strong quality of life, and pockets within walking distance of local amenities, schools and green spaces,’ Tom said.
‘Narrabundah is a large and diverse suburb with multiple pockets, meaning there are still opportunities to secure great value.’
Overall, the latest Domain House Price Report found that Canberra’s house prices had risen by 3.6 per cent ($39,309) over the December quarter, to a median of $1.14 million.
With prices now just 2.8 per cent ($33,108) below their previous peak in June 2022, Canberra’s house market is on track to reach record highs in 2026.
However, while Canberra’s housing market is surging ahead, the same can’t be said for unit prices.
In the nation’s capital, unit prices fell 1.3 per cent ($8,189) over the December quarter to $611,466, making Canberra the only major city to record a decline in unit prices.
In Narrabundah specifically, the unit median fell 11 per cent over the year to $612,500. This figure represents virtually stagnant growth of just 0.4 per cent over five years.
The realtor said buyers are drawn to the ‘established character’ of the area. Pictured is a recognisable bird sculpture located in the Narrabundah shopping precinct
The property report detailed the state of play between Canberra house prices compared to unit prices.
‘Houses have now outperformed units for a second consecutive quarter, widening the price gap between property types to a three-year high, with a house costing 86 per cent more than a unit,’ the report explained.
‘This growing divergence highlights a two-speed market in Canberra, in which demand for detached housing is recovering far more quickly than demand for units.’
