Property Prices: What’s Next?
The financial year has been a wild ride for property prices. Despite the cost-of-living crunch and high interest rates, home values across Australia have surged by 8.3% over the past 12 months, according to CoreLogic.
But the big question remains: will prices keep heading north, or can we expect the market to cool? This is crucial for homebuyers deciding whether now is the right time to jump in.
To get some answers, let’s dive into Domain’s latest forecast report, which outlines expected property price movements over the next 12 months.
The Big Picture: Prices Set to Keep Rising.
Domain’s report indicates that several factors will likely push Australian home prices higher over the next year. Tight supply of new homes and lower than usual numbers of homes listed for sale are key factors. On the demand side, a growth in migration is fuelling buyer interest.
The “push-pull between affordability and availability” will shape Australia’s property market between now and June 2025, according to Domain.
Price Growth Expected to Vary Across Cities.
Not all regions will experience the same rate of growth. Here’s a quick tour of what Domain predicts for various parts of Australia (excluding Hobart and Darwin, which were not covered in the report).
- Brisbane: The market has seen a 16.3% increase in the past year. Domain forecasts another 6-8% growth, potentially pushing the median house price to $998,500 by mid-2025. Apartment values are expected to rise by 4-6%.
- Sydney: Expected 6-8% growth could see the median house price hit $1.76 million by next year. Apartment prices could reach a new median record of $855,000 with 4-6% growth.
- Melbourne: A cooler market with expected growth of 0-2%, setting median house prices between $1.03 million and $1.05 million. Unit prices may rise by up to 4%. Regional Victoria is the only area where prices are expected to fall, by 0-3%.
- Adelaide: With a forecast of 7-8% growth, Adelaide’s median house price might reach $984,000 by June 2025. Unit prices are expected to grow by up to 6%, crossing the $500,000 threshold.
- Perth: Enjoying a 22% rise over the past year, Perth may see additional growth of 8-10%, potentially achieving a median house price of $840,000 to $856,000. Unit prices are tipped to increase by 4-5%.
- Canberra: Expecting mild growth, house prices could rise by up to 4%, while unit prices may increase by 1-4%.
What to Weigh Up.
It’s important to remember that Domain’s forecasts are predictions, not guarantees. Factors like a tighter jobs market and stagnating incomes could put downward pressure on prices.
The right time to buy is when you feel ready. While we can’t predict exact property price movements, we can provide clear insights into your borrowing power and help you find a home loan that suits your needs.
Need Guidance?
If you’re considering entering the property market, give me a call today. I’m here to help you understand your borrowing power, navigate home loan options, and get you one step closer to owning your dream home.
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