With Australia’s property market in a resurgent mood at the end of 2023, the prospects for continued value increases for the next 12 months appear strong.
The cash rate hike to 4.35% on Melbourne Cup Day may have dampened the party, but industry researcher CoreLogic continues to show monthly rises of up to 0.9% in average residential property values.
With values up 7.6% by late last year following the post-Covid dip, CoreLogic predicts the nation will soon achieve a record-high benchmark in residential property values.
These are some of the market predictions for 2024:
- CBA forecasts 5% value growth across Australia, with Sydney up 4% and Melbourne 5%.
- National Australia Bank sits in the “plus 5%” camp and predicts interest rates will begin to fall later this year.
- ANZ Bank is a little more conservative, forecasting a 3% to 4% value increase.
- Westpac believes prices will rise 4% nationally but jump 6% in Sydney and only 3% in Melbourne. Like many of its competitors, Westpac predicts rate cuts by mid-2024.
- KPMG’s property report forecasts prices will rise by 4.9% between October 2023 and June 2024. In the 12 months to June 2025, it sees a further rise of 9.4%.
The Australian Financial Review surveyed 10 economists, finding they believed property prices would rise by up to 7% this year. The most bearish was Oxford Economics with a prediction of 1.5%. Knight Frank forecast 4% and AMP predicted 7%.