Experts predict that house prices across Australia will keep rising in 2024 and 2025, with notable increases anticipated in cities such as Perth, Adelaide, Brisbane, and Sydney. The forecast suggests that house prices in the combined capital cities will likely increase by 4 to 7 percent, while unit prices are expected to grow by 3 to 5 percent.
By the end of the 2025 financial year, Sydney’s median house price is projected to exceed $1.7 million, and Perth’s median is expected to surpass $800,000. Adelaide and Brisbane are likely to approach or surpass the $1 million median house price mark. The Gold Coast housing market is also anticipated to set new records, with prices rising by 3 to 6 percent, while the Sunshine Coast is expected to see an increase of 2 to 5 percent.
Economists and Researchers, noted that the anticipated growth rate is relatively modest compared to the strong upswing observed in the past.
Prices are still increasing, but not as rapidly as they did in the previous financial year.
Perth and Adelaide are exceptions to this trend, with Adelaide’s market described as unstoppable and Perth’s continuing its strong performance.
Unit prices are also expected to rise across Sydney, Brisbane, Adelaide, Perth, the Gold Coast, and the Sunshine Coast, hitting new record levels. Regional units are forecasted to see an overall price increase of 3 to 5 percent, reflecting a shift towards more affordable property options, according to housing market experts.
Melbourne’s property market is projected to have a more modest annual growth of up to 2 percent for houses, with median prices expected to range between $1.03 million and $1.05 million. This indicates the slowest and most inconsistent recovery in the city’s history.
Australia’s housing market is still facing substantial pressure as households struggle with affordability and serviceability challenges amid the ongoing cost-of-living crisis, exacerbated by persistently high interest rates. The Reserve Bank of Australia has maintained the official cash rate at a decade-high 4.35 percent since late last year.
The Domain report highlights that the shortage of new housing supply will remain the primary factor driving property prices in the near term. For years, the housing supply has been limited due to factors such as land scarcity, insufficient building approvals, and elevated construction costs.
