Property prices are projected to continue their upward trajectory until mid-2025, albeit with regional variations, according to a new report. Let's uncover the areas where prices are expected to rise and where they might decline.
It's been a turbulent financial year for property prices. Despite a cost of living crunch and high-interest rates, home values across Australia have surged by 8.3% over the past 12 months, as reported by CoreLogic.
Will the upward trend persist, or will the market cool down at some point? These are crucial considerations for prospective home buyers contemplating the right time to enter the market.
To shed light on this, we examined Domain’s latest forecast report, which outlines anticipated property price movements over the next year.
Domain anticipates several factors to drive Australian home prices higher over the coming year. A limited supply of new homes and a lower-than-usual number of homes listed for sale are key contributors. Additionally, strong buyer demand, bolstered by increased migration, plays a significant role.
Domain describes this scenario as a "push-pull between affordability and availability," which will shape Australia’s property market until June 2025.
However, not all home prices across Australia will follow the same trend or pace.
Brisbane's property market has seen a remarkable 16.3% price growth over the past year, and Domain forecasts further growth. With an anticipated 6-8% increase, Brisbane’s median house price could reach a record high of up to $998,500 by mid-2025. Apartment values are expected to rise by 4-6%.
Domain predicts that a 6-8% growth in Sydney's property prices could push the median house price to a new record high of up to $1.76 million by next year. Apartment prices might also hit a new record of up to $855,000, based on a 4-6% forecast growth.
Melbourne's housing market is expected to experience modest growth, with a 0-2% increase predicted, leaving median house prices between $1.03 million and $1.05 million. Unit prices, however, may see up to a 4% rise. Regional Victoria might witness a slight decline, with a 0-3% decrease expected by mid-2025.
Adelaide could potentially become a million-dollar city if the forecasted 7-8% price growth materialises, pushing the median house price to up to $984,000 by June 2025. Unit prices are anticipated to grow by up to 6%, exceeding the $500,000 mark.
Perth has enjoyed a stellar year, with a 22% increase in home prices over the past 12 months. Domain suggests that with an 8-10% growth forecast, Perth’s median house price could reach between $840,000 and $856,000 by next year. Unit prices are expected to rise by 4-5%.
Canberra is likely to see mild house price growth, with values forecast to rise by up to 4%. Unit prices in the capital are expected to increase by 1-4%.
Domain's forecasts are predictions, not certainties. While factors exist that could drive prices higher, potential downward pressures such as a tighter job market and stagnating incomes should also be considered.
In conclusion, the ideal time to buy is when you feel prepared to enter the market. Although we can't predict property prices with certainty, we can assist you in understanding your borrowing power, securing home loan approval, and finding a suitable mortgage for your needs. Whether you're considering buying in Queensland especiaally in Townsville, Brisbane, the Gold Coast, or any other part of Australia, being informed and prepared is key. If you're thinking about refinancing, now might be the right time to explore your options.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au.
Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
