Where Home Prices in Australia Are Forecast to Increase Most in the Next Year?

Discover which Australian cities are projected to see the highest growth in real estate pricesover the next 12 months. Stay informed with the latest market outlook report.

Australia real estate prices are expected to continue rising in the next 12 months, albeit at a slower pace compared to the previous year. The smaller capital cities, such as Hobart and Canberra, are projected to see the least growth, with prices forecasted to increase by 0-3% and 2-5% respectively, according to PropTrack's June Property Market Outlook report.

In Hobart, after experiencing significant price hikes during the pandemic, demand for homes has decreased, leading to a 1.5% decline in prices since July 2023. Similarly, Canberra has seen a surge in the volume of homes for sale, with new listings up by 43% and total listings up by 32% compared to May 2023, resulting in a more balanced market and slower price growth.

On the other hand, Sydney, Melbourne, and Brisbane are expected to see home prices rise by 3-6% in the next year. While Sydney and Brisbane have witnessed strong buyer demand, Melbourne's market recovery has been slower, but improvements are anticipated. Perth and Adelaide are forecasted to experience the highest growth in home prices, with increases of 8-11% and 5-8% respectively, due to their affordability and limited housing supply.

The tight rental market in Perth and Adelaide has also contributed to the significant price increases, as renters transition to homeownership. Looking ahead, the question arises as to which suburbs will benefit the most from this growth. In Perth, suburbs like Darlington, Kallaroo, and Armadale have seen the highest annual growth rates for houses, with prices up by 42%, 38%, and 36% respectively. In Adelaide, suburbs like Elizabeth North, Somerton Park, and Elizabeth South have experienced substantial growth in house prices, with increases of 37%, 36%, and 36% respectively.

For units, suburbs like Shoalwater in Perth and Plympton and Henley Beach in Adelaide have recorded significant gains in median sale prices. With high buyer demand expected to persist, particularly in Perth and Adelaide where supply is limited and affordability is a key factor, further price increases are anticipated, albeit at a slower pace during the winter months.

While real estate prices are forecasted to rise across most Australian cities in the next year, the pace of growth is expected to be more moderate compared to previous years. The smaller capital cities may see slower growth rates, while Perth and Adelaide are projected to experience the highest increases in home prices due to their affordability and limited supply.