Leasehold Land in Canberra: What It Means for Your Property’s Value

If you own or are buying property in Canberra, you have probably hit a surprising fact: you do not own the land outright. Almost all land in the ACT is leasehold — held under a Crown lease, usually for 99 years, with the land itself owned by the Commonwealth and managed by the ACT Government. It is a system found nowhere else in Australia at this scale, and it makes a lot of Canberra owners nervous about what their property is really worth.

The short answer: for most residential property, leasehold does not reduce your market value. But the lease term is something a local valuer watches closely. Here is what it means in practice.

What is leasehold tenure in the ACT?

Leasehold tenure in the ACT means almost all Canberra land is held under a Crown lease — usually for 99 years — with the land owned by the Commonwealth and managed by the ACT Government. A Crown lease behaves like ownership: you can sell it, mortgage it, renovate it and pass it on.

What “leasehold” actually means in the ACT

Under the ACT system, all land (other than National Land) is owned by the Commonwealth and leased to residents, usually on a 99-year Crown lease. When you buy, you do not get a fresh 99 years — you take over the balance of the existing term.

In day-to-day terms, a Crown lease behaves like ownership: you can sell it, mortgage it, renovate it and pass it on. As the ACT Government puts it, if you hold a Crown lease, you effectively own it.

Paying rent on the land: nominal rent and land rent leases

An ordinary residential Crown lease, where the land was bought with the home, carries a nominal rent. The Planning Act 2023 defines nominal rent as 5 cents a year. The land is paid for in the purchase price, and the ongoing charges are rates and, where it applies, land tax.

The exception is a land rent lease under the ACT Government’s Land Rent Scheme, which the ACT Revenue Office runs under the Land Rent Act 2008. The household rents the block instead of buying it, finances the house and the transfer costs, and pays annual land rent on top of rates. Since 1 October 2013 new entrants have been limited to households eligible for the discounted rate of 2% of the land’s unimproved value, and the 4% standard rate is closed to them. For these post-2013 leases the lessees’ combined gross income must not exceed $170,000, plus $3,330 for each dependent child up to five. None of the lessees can own other real property, and at least one must live in the home once it is built.

For a valuer the two leases are different assets. A post-2013 land rent lease can generally be transferred only to a buyer who also meets the eligibility test (Land Rent Act 2008, section 16C). The lessee can convert to a nominal rent lease at any time through a rent payout variation under section 320 of the Planning Act 2023. Under the current payout policy direction, the lessee of an ordinary land rent lease can usually choose to pay either the land’s unimproved value for the year of the application or the lease’s current market value as assessed by the planning authority, and land rent already paid does not count towards it. ACT Planning asks for the current Revenue Office valuation notice or a private valuation with the application. A sale of the nominal rent house next door is not a like-for-like comparable for a land rent house until the land component and the narrower buyer pool are accounted for, so check which kind of lease you hold before relying on a neighbour’s sale price or an online estimate.

Land advertised for lease on commercial property sites is a separate market of business tenancies, where the valuation question is the rent (see rent review valuations).

Does leasehold reduce your property’s value?

For standard residential property, generally no. Three reasons:

• The term is long and renewable. Ninety-nine years is effectively perpetual for a homeowner, and leases can be — and routinely are — renewed.
• Banks lend on it normally. Lenders treat a Crown lease as ownership for mortgage purposes, so financing, and therefore the buyer pool, is unaffected.
• The market prices it as ownership. Buyers across Canberra transact on leasehold every day, so comparable sales already reflect it. A valuer values the leasehold interest, and for residential that lands at the same market value a freehold equivalent would.

When the lease term does matter

There are real exceptions a valuer flags:

• A short remaining term. Renewal is a statutory entitlement. Under section 289 of the Planning Act 2023 the territory planning authority must grant a further lease of up to 99 years if the conditions are met, including that neither the Territory nor the Commonwealth needs the land for a public purpose; our Canberra and ACT property guide sets out the rest. The practical risk is finance. If the balance drops low — lenders often get cautious under about 25 years — a buyer’s bank may require the lease to be renewed before settlement. Left unaddressed, that can affect saleability and timing on an older lease.
• The lease purpose clause. Every Crown lease specifies a permitted use (for example, a single dwelling). Redeveloping — a dual occupancy, a subdivision or a change of use — usually means varying the lease, which can trigger a Lease Variation Charge under the Planning Act 2023. Standard variations carry a fixed amount set by determination (section 331); non-standard ones are charged at 75% of the increase in the lease’s value that the variation creates (section 332). That is central to any development valuation, and the same guide covers the exemptions and remissions.
• Unusual leases — rural, commercial, or older clauses — where the terms genuinely differ.

These are exactly the points an interstate valuer can miss, and where the figure has to be right.

Why local valuation matters across the Canberra region

Leasehold is an ACT-wide system: it applies in Belconnen, Gungahlin, Woden, Tuggeranong and the inner suburbs alike. Cross the border into NSW — Queanbeyan, Yass, Murrumbateman — and you are back to freehold, with a different set of comparables. A valuer working the region every week reads both correctly.

Landmark Valuations is based in Belconnen and values across the ACT and its NSW fringe. That means your valuation reflects the right tenure, the right lease term, and local comparable evidence — not an interstate assumption that leasehold must be worth less.

What to do

• Check your remaining lease term on the Crown lease (in your title documents) — especially before selling or refinancing an older property.
• Note your lease purpose clause if you are thinking about redeveloping.
• Get a local valuation when you need a defensible figure — for finance, family, tax, a sale, or if part of your land is being compulsorily acquired for a public project.

If you would like a valuation on a Canberra (or Queanbeyan-region) property from a valuer who knows the leasehold system, you can request a quote, or read more about our Canberra valuations and ACT coverage.

Frequently asked questions

Does leasehold reduce the value of a Canberra property?

For standard residential property, generally no. Ninety-nine years is effectively perpetual for a homeowner, and leases are routinely renewed. Lenders treat a Crown lease as ownership, so the buyer pool is unaffected, and buyers across Canberra transact on leasehold every day, so comparable sales already reflect it. A valuer values the leasehold interest at the same market value a freehold equivalent would.

Do I really own my home if it is on a Crown lease?

In day-to-day terms, yes. You hold a 99-year Crown lease that you can sell, mortgage, renovate, inherit and pass on. As the ACT Government puts it, if you hold a Crown lease you effectively own it. When you buy, you take over the balance of the existing term rather than a fresh 99 years, but that term is long and renewable.

Do you pay rent on land in Canberra?

Not on an ordinary residential Crown lease. Where the land was bought with the home, the lease carries a nominal rent, which the Planning Act 2023 defines as 5 cents a year. The exception is a land rent lease under the ACT Government’s Land Rent Scheme, where the household rents the block and pays annual land rent on top of rates. For leases contracted since 1 October 2013 the rent is 2% of the land’s unimproved value, and the scheme is limited to households under an income threshold who own no other real property.

Can a land rent lease be converted to a standard Crown lease?

Yes, at any time. The lessee applies for a rent payout variation under section 320 of the Planning Act 2023 and, for an ordinary land rent lease, can usually choose to pay either the land’s unimproved value for that year or the lease’s current market value as assessed by the planning authority. Land rent already paid does not count towards it. Until it is converted, a post-2013 land rent lease can generally be sold only to a buyer who meets the scheme’s eligibility test, so conversion widens the pool of buyers.

Will banks lend on leasehold property in Canberra?

Yes. Lenders treat a Crown lease as ownership for mortgage purposes, so financing is standard and the buyer pool is unaffected. The main exception is a short remaining term: if the balance drops low — lenders often get cautious under about 25 years — a buyer’s bank may require the lease to be renewed before settlement.

What is a Lease Variation Charge in the ACT?

Every Crown lease specifies a permitted use, such as a single dwelling. Redeveloping — a dual occupancy, a subdivision or a change of use — usually means varying the lease, which can trigger a Lease Variation Charge under the Planning Act 2023. Standard variations carry a fixed amount set by determination; non-standard variations are charged at 75% of the increase in the lease’s value that the variation creates. That charge is central to any development valuation, so it is worth noting your lease purpose clause before you plan works.

Is land just outside the ACT also leasehold?

No. Leasehold is an ACT-wide system, applying in Belconnen, Gungahlin, Woden, Tuggeranong and the inner suburbs alike. Cross the border into NSW — Queanbeyan, Yass or Murrumbateman — and you are back to freehold, with a different set of comparable sales. A valuer who works the region every week reads both tenures correctly rather than applying an interstate assumption.

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Sources

• ACT Government — Crown leases (Planning)
• ACT leasehold and Crown lease home loans — lender treatment
• ACT Revenue Office — About the Land Rent Scheme and Land rent for leases granted on or after 1 October 2013
• ACT Planning — Changes to a Crown lease (land rent payout, nominal rent)
• Land Rent Act 2008 (ACT), section 16C, and Taxation Administration (Amounts Payable—Land Rent) Determination 2026 (DI2026-153)
• Planning Act 2023 (ACT), sections 289, 320-322, 331-332 and dictionary (nominal rent), and Planning (Land Rent Payout) Policy Direction 2023 (No 1) (DI2023-266)

Last verified 14 October 2026. This is general information, not legal or financial advice; confirm the specifics of your Crown lease with your conveyancer or the ACT Government.

See also

• Capital Gains Tax Valuation in Canberra: Preparing for 1 July 2027 — CGT valuations for Canberra property
• Property Values in Canberra and the ACT — district values, lease renewal, the Lease Variation Charge and AUV rating