Domain Predicts Continued Rise in Australian Home Prices

Domain’s latest FY25 Price Forecast Report indicates that home prices across Australia’s capital cities and regional areas are poised to reach new record highs. The projected price surge is driven by robust population growth, persistent construction challenges, and enhanced borrowing capacity among buyers.

Key metropolitan areas such as Perth, Adelaide, Sydney, Brisbane, Sunshine Coast, Gold Coast, and various regional locations are expected to lead in price gains for both houses and units. This growth is attributed to increased demand, shifts in housing compositions, demographic changes, and ongoing population expansion.

While the report forecasts overall home price increases in the coming year, it notes that house price growth may moderate compared to recent years. Unit prices in major cities like Sydney, Brisbane, Adelaide, Perth, and popular coastal regions are also anticipated to achieve new highs.

Dr. Nicola Powell, in highlighting the drivers of this price escalation, underscores the significance of population dynamics, persistent building constraints, and the favorable borrowing environment shaping the current property market landscape.

As Australia navigates these evolving market conditions, stakeholders will closely monitor these forecasts, anticipating how ongoing trends and external factors could influence residential property dynamics in the near future.