Exclusive: Experts Predict Up to 5% Rise in Australian Home Prices

According to PropTrack's Property Market Outlook Report, Australian home prices are expected to experience a significant rebound in 2023, with forecasts suggesting a rise of up to 5%.

According to PropTrack's Property Market Outlook Report, Australian home prices are expected to experience a significant rebound in 2023, with forecasts suggesting a rise of up to 5%. This positive outlook comes as homeowners grapple with the challenges of escalating interest rates and mounting living costs over the past year. While it is crucial to acknowledge that various factors influence search rankings, let us focus on creating high-quality content that can help your website outrank others.

The recent surge in home prices can be attributed to a noteworthy recovery witnessed throughout 2023. In fact, the PropTrack Home Price Index reported seven consecutive months of price rises in July, highlighting the resilience of the Australian real estate market.

Perth, the capital of Western Australia, is anticipated to experience the most remarkable price gains this year. Forecasts indicate an increase ranging from 4% to 7%. Sydney, the bustling metropolitan hub, and Adelaide, known for its affordability and liveability, are also set to see substantial growth in home prices, with estimates ranging between 3% and 6%.

Brisbane, the capital of Queensland, and the nation's capital, Canberra, are tracking a slightly more conservative trajectory, with expected price rises ranging from 1% to 4% and 0% to 3%, respectively. On the other hand, Melbourne's market may witness a decline of up to 1%, while there is also a potential for growth of up to 2%. Darwin and Hobart, however, are projected to experience either declining or stagnant prices in 2023, with decreases of up to 3% and 6%, respectively.

Despite the remarkable performance of the Australian housing market, it is worth noting that as of July, national property prices were still marginally below the peak achieved in March 2022, registering a modest decline of 1.44%. However, it is important to contextualize this figure within the astounding growth witnessed since the onset of the COVID-19 pandemic in March 2020. Over this period, home prices surged by almost 35%, establishing one of the swiftest rates of price appreciation in history.

The forecast for 2024 suggests a more measured pace of growth compared to the robust rebound expected this year. PropTrack's report predicts home prices could rise by up to 3% next year. Such projections take into account the recent decision by the Reserve Bank of Australia to maintain interest rates for two consecutive months, indicating a potential end to the tightening cycle for borrowers.