Real estate specialist Domain Group is predicting an increase in domestic residential property values over the coming year led by assets located in Sydney and Melbourne.
The organisation’s latest “Price Forecast Report” has tipped a 7 per cent jump in the Sydney median house price to $1.83 million, representing an increase of $112,000. It also anticipated a 6 per cent rise in the same measurement for Melbourne, with that city reaching a record $1.1 million median house price tag. Domain Group acknowledged the data showed residential property is 63 per cent more affordable in the Victorian capital, giving it a competitive advantage over its northern state rival for investors.
The study reflected more subdued growth expectations in Brisbane and Adelaide residential property prices, with increases of 5 per cent and 4 per cent and median housing prices of $1.09 million and $1.04 million respectively.
Perth was forecast to experience a 5 per cent residential real estate price increase, with the median figure expected to reach $982,000.
“East coast markets are regaining momentum, but growth will depend heavily on local factors like affordability and population changes,” Domain chief of research and economics Dr Nicola Powell noted.
“Lower interest rates, cheaper borrowing and targeted support for first-home buyers will keep prices rising, especially in Sydney and Melbourne, which are most sensitive to rate changes. The double-digit price growth we saw in Brisbane, Perth and Adelaide are also forecast to soften.
“Even with more rate cuts on the horizon that will increase buyer capacity, the upswing in house prices is expected to be more modest than in previous rate-cutting cycles. This reflects forecasts of smaller, more gradual rate reductions and ongoing affordability challenges, with housing costs continuing to take up a significant portion of household income in most capital cities.”
''