Home prices to rise by 5 per cent in 2024: PropTrack
Property prices rose 2.7 per cent in the first five months of the year.
Australian residential property prices are expected to rise by as much as 5 per cent in 2024, according to a new report, as buyer demand holds up despite fears interest rates are likely to remain higher for longer.
REA Group’s latest PropTrack Property Market Outlook Report reveals that property prices rose 2.7 per cent in the first five months of the year, and are up 5.9 per cent in the first 11 months of the current financial year.
Perth is expected to lead home price growth again next financial year, albeit at a slower pace, having risen 18.9 per cent in the first 11 months of 2023-24.
PropTrack estimates suggest home prices in Perth are likely to rise by between 8 per cent and 11 per cent in 2024-25, followed by Adelaide, where prices are up 12.9 per cent in the financial year to May, and are expected to rise a further 5-8 per cent next financial year.
Home prices in Brisbane, Sydney and Melbourne are projected to rise by between 3 per cent and 6 per cent in 2024-25, outpacing the predicted national average of 2-5 per cent.
PropTrack director of economic research Cameron Kusher said the figures proved that the Australian property market remained “far more resilient than anticipated”.
“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,” he said.
“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.
“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.”
Home prices in Brisbane are up 12.2 per cent in first 11 months of 2023-24, while Sydney prices are up 5.8 per cent, and Melbourne prices are just 0.8 per cent higher.
According to the PropTrack report, national sales volumes were 13.9 per cent higher from January to May 2024 when compared to the same time last year, led by heightened activity in Sydney and Melbourne where stock levels have been rising faster than most of the rest of the country.
The number of enquiries per listing on realestate.com.au fell by 6.3 per cent from May 2023, according to the PropTrack report, but remains at an elevated level.
