With the 2023-24 financial year behind us, our focus shifts to 2024-25 and the property market outlook.
According to PropTrack, property prices rose nationally by 5.9% during the 2023-24 financial year.
But with affordability pressures and high interest rates, everyone is asking will the Australian property market crash?
Despite affordability pressures and high interest rates, Australian home prices are forecast to rise in FY25 due to constrained supply and robust population growth.
Most capital cities, led by Sydney, Brisbane, Adelaide, and Perth, are projected to achieve record-high house and unit prices by the end of FY25. In contrast, Melbourne and Canberra are expected to experience slower growth.
While house prices have surged recently, unit prices have lagged. However, this trend is anticipated to reverse slightly in Melbourne and Canberra, while Sydney's unit price growth is expected to remain steady.
Table 1. House and unit price forecast to the end of FY25
Location | Houses | Units |
Australia | 3% to 6% | 2% to 4% |
Combined capitals | 4% to 7% | 3% to 5% |
Combined regionals | 2% to 3% | 1% to 3% |
Sydney | 6% to 8% | 4% to 6% |
Melbourne | 0% to 2% | 2% to 4% |
Brisbane | 6% to 8% | 4% to 6% |
Perth | 8% to 10% | 4% to 5% |
Adelaide | 7% to 9% | 4% to 6% |
Canberra | 0% to 4% | 1% to 4% |
Regional NSW | 0% to 3% | 1% to 3% |
Regional VIC | -3% to 0% | 1% to 2% |
Regional QLD | 2% to 4% | 3% to 4% |
Gold Coast | 3% to 6% | 3% to 4% |
Sunshine Coast | 2% to 5% | 3% to 4% |
Source: Domain
The trajectory of Australian housing prices in the coming year will be determined by a complex interplay of factors.
While strong population growth, changing demographics, and limited housing supply are driving prices upward, countervailing pressures from rising living costs, potential unemployment increases, and declining consumer confidence are exerting downward force on the market.
Despite the complex interplay of factors influencing the housing market, there is a general consensus among experts that there will be no Australian property market crash and prices will continue to rise nationally throughout 2024-25.
If you would like to know more about how we can help you build a property portfolio give us a call on 0423 344 286 or email us at hello@mindsetproperty.com.au, or simply connect with our Director Peter Theodorou.
Subscribe to our website for instant access to our latest blogs, designed to guide you in cultivating the right mindset for property buying and investment.
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
Comments