The Latest Forecast from Domain indicates that the value of real estate in Sydney will increase by 8% next year, potentially reaching a new average of AUD 1.76 million. This growth is driven by strong population growth, higher approval rates for loans, and limited housing supply. If the forecast proves accurate, the average property price in Sydney could increase by an additional AUD 132,000 by the end of the financial year. Brisbane, Perth, and Adelaide are also expected to hit new record prices, although Melbourne and Canberra may not reach new highs.

Predicted Growth by Location (%):

• Perth: 10

• Brisbane: 8

• Adelaide: 9

• Melbourne: 2

Perth is predicted to see the largest increase, with an expected 10% rise, bringing the average price to AUD 856,000. Brisbane is expected to experience an 8% increase, bringing the average price close to AUD 1 million by mid-next year. Adelaide is also expected to surpass the AUD 1 million mark with a 9% increase, pushing the average price to AUD 984,000. In contrast, Melbourne is forecast to see only a 2% increase, reaching AUD 1.05 million, the lowest growth rate among the major cities. This reflects slower recovery in Melbourne due to factors such as slower population growth, increased housing supply, and tax changes.

Although winter tends to be slower, the Australian real estate market remains active, with more listings and strong buyer interest. PropTrack reports that the number of listings has increased partly due to rising prices and favorable selling conditions. However, prolonged high interest rates and the cost of living crisis have contributed to heightened market activity and rising property prices. According to PropTrack, Perth leads the major cities in sales speed, while Adelaide and Brisbane are also showing significant growth.

Overall, the Australian real estate market shows clear differences between regions, with some cities experiencing record price increases while others face slower growth or price declines.4o mini