Domain house prices report: sydney melbourne prices tipped to soar

House prices are expected to rise in the coming year, despite aggressive rate hikes due to high immigration.

Real estate market group Domain forecasts a six to nine per cent rise in house prices in Sydney between now and June 2024 and a two to five per cent rise in unit values.

House prices in Melbourne would rise by zero to two percent, while values ​​in Brisbane would rise by one to four percent.

Even the smaller capitals were tipped to see an increase, with house prices in Adelaide expected to rise by two to five percent, while prices in Perth rose by one to three percent.

House prices in Hobart were predicted to rise by three to five percent, while apartment values ​​would rise by one to three percent.

House prices in Canberra are expected to rise by two to four percent.

The predictions are being made even though the Reserve Bank has already hiked rates 12 times since May 2022, with economists from Westpac, NAB and ANZ expecting two more hikes in July and August that will push spot rates to a 12-year high of 4. would bring 6. per cent.

Dr. Nicola Powell, Domain’s head of research and economics, said high immigration would spur a house price recovery.

“Public pressures over the next 12 months will lead to higher factors driving up housing demand and house prices,” she said.

Australia has seen an exponential increase in temporary and permanent migration since the international border reopened in late 2021 to address skills shortages.

‘Contrary to natural population growth, those who come from abroad are of course not yet accommodated.

“This puts us in a position where nearly 130,000 additional homes will be needed in the next fiscal year alone, with the East Coast receiving the largest share of migrants.”

Australia’s population grew 1.9 percent last year, with a net migration increase of 387,000, including the permanent influx of skilled migrants and the long-term cohort of international students.

The Treasury Department expects a record 400,000 migrants to move to Australia this financial year, resulting in most cities having very tight vacancy rates.

Reserve Bank of Australia governor Philip Lowe told a Senate economics committee hearing last month that housing supply has not kept pace with population growth

Reserve Bank of Australia Governor Philip Lowe told a hearing before the Senate Economics Committee last month that housing supply has not kept pace with population growth.

The population will grow by 2 percent this year. Are there two percent more homes? No, said Dr. Lowe.

‘The rate of addition to the housing stock is very slow.

‘A lot of people are coming into the country, people who want to live alone, that doesn’t work.

“The way this unfortunately resolves itself is through higher house prices and higher rents.”