How High Will It Go?

Property prices are predicted to keep rising throughout the new financial year, although at a slower pace than in FY2024.

Analysis by PropTrack shows the smaller capital cities are most likely to record the strongest growth.

It says home prices are expected to increase by between 8% and 11% in Perth and 5% and 8% in Adelaide.

“The relative affordability of these cities, coupled with the decline in homes for sale, as seen by their respective 23% and 9% year-on-year decrease in total listings, have been drivers of their significant growth in the past year,” it says.

Sydney, Melbourne, and Brisbane home prices are forecasted to rise 3% and 6% in the next 12 months.

REA Group economic analyst, Megan Lieu says a tight rental market has contributed to robust increases in the past financial year with many renters deciding to buy instead of facing an expensive and tight rental market.

“Demand from buyers is expected to remain high in the coming months, particularly in Perth and Adelaide where supply is short and homes are more affordable,” Lieu says.