Australian property prices are on track to see an increase of up to 5% in 2024 following an already robust growth of 2.7% from January to May, according to PropTrack’s Property Market Outlook Report for June.
The report highlighted significant regional disparities in property price growth.
Perth continues to lead with a staggering 18.9% increase over the current financial year, with an additional 8% to 11% growth expected in the 2024-25 financial year.
Other major cities are also showing positive trends, with Brisbane, Sydney, and Melbourne expected to see price rises between 3% and 6%. Adelaide’s market is projected to grow by 5% to 8% in FY25 after a 12.9% increase this financial year.
Cameron Kusher (pictured above), director of economic research at PropTrack, commented on the resilience of the market.
“Forecasting home price growth for the year ahead becomes increasingly challenging as we observe a property market that is proving to be far more resilient than anticipated,” Kusher said.
He noted the strong buyer demand despite high-interest rates and an increase in the stock for sale.
“Buyer demand remains strong despite interest rates sitting at 12-year highs, borrowing capacities falling and the volume of stock for sale increasing, leading property prices to rise at a faster rate than expected,” Kusher said.
The impending Stage 3 tax cuts and anticipated interest rate reductions in FY25 are expected to further stimulate the market.
“Over the next financial year, the introduction of Stage 3 tax cuts and projected interest rate cuts have the power to further entice buyer demand while supply from new dwelling commencements and completions are expected to remain low,” Kusher said.
The PropTrack report also shed light on sales volume and buyer engagement.
National sales volumes saw a substantial increase of 13.9% from January to May compared to the same period last year.
Despite a higher volume of available stock in Sydney and Melbourne, these areas experienced the most significant increase in sales volumes.
Additionally, the median time properties remained listed on realestate.com.au decreased, indicating a strong market.
“We expect home price growth will be slightly stronger by the end of the 2024-25 financial year than annual growth over the 2024 calendar year, with prices anticipated to rise in the larger markets of Sydney and Melbourne over the next 12 months while slowing in several capital cities,” Kusher said.
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