Data shows the housing market recovery is in full swing

For property investors, the latest Domain Forecast Report makes for some good reading. According to the report, the property market in Australia is now in a strong recovery phase, with house prices in several cities expected to hit record highs over the next financial year. Of these, Sydney comes out on top with projected price growth of up to 9%. What’s more, the report also suggests that unit prices in Brisbane, Adelaide, and Hobart could potentially surpass existing records too.

In this blog, we’ll explore what this could mean for property investors looking to get into the market for the first time in 2023, or those who want to add to their existing portfolio.

Housing price forecasts

In the Domain Forecast Report, it shows Australia’s housing market is steadily recovering over the 2023-24 financial year. House prices in Sydney, Adelaide, and Perth, and unit prices in Brisbane, Adelaide and Hobart, could have fully recovered from the 2022 downturn by the end of the next financial year. Adelaide and Perth house prices are predicted to rise slowly and may avoid a downturn.

  1. Sydney

    The Domain Forecast Report predicts that Sydney will be the leader of the pack with a median house price increase of between 6-9% and unit prices of 2-5%. This means that by the end of the next financial year, house prices could reach a new record median high of $1.62 million to $1.66 million.

  2. Melbourne

    According to the research, Melbourne is facing the slowest recovery out of all the capital cities. While house prices are either staying the same or rising slightly, they’re not recovering to their record-high median price of $1.094 million just yet. And while units are expected to stay steady for the year, investors should keep their eyes open for desirable locations where growth is imminent.

  3. Brisbane

    As the rising median prices in Brisbane suggest, the city’s property market is set to continue its upward trajectory, albeit at a steadier pace. The Domain Forecast Report expects house prices to climb by 1 – 4%, bringing them closer to the all-time high of $858,511. Meanwhile, unit prices are predicted to be more stable, with growth rates of 0 – 1%. However, despite this tempered growth, median prices for both houses and units are set to reach new records in the coming years, reflecting the strength of the Brisbane market.

  4. Perth

    Perth’s booming property market is showing no signs of slowing down, with median prices expected to hit over $700,000 for the first time by July 2024. Despite this record high, the good news for unit buyers is that prices are still predicted to be $36,000-$43,000 less than their previous peak. With its appeal as a destination for new migrants, Perth remains an attractive option for investors.

  5. Canberra

    Investors looking to make a profitable venture in the real estate market might want to keep an eye on Canberra. The Domain forecast predicts a moderate growth in housing values, ranging from 2 – 4%. Although the median price may still not be at the peak of $1.17 million, the steady growth is a good sign for potential investors. Unit prices are also estimated to grow between 1 and 2%. While the recovery might not be as explosive as some of the other capital cities, the growth in Canberra is assured, making it a great option for those looking for a stable investment.

  6. Hobart

    For investors keeping a close eye on the Australian property market, Hobart is a city not to be overlooked. Despite experiencing a slight dip in housing prices in 2022, Hobart is expected to bounce back with growth rates ranging from 3 – 5%, making it the second strongest capital city after Sydney. But it’s not just houses that are seeing an upswing in median values, as unit prices are predicted to reach a record high of over $570,000.

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