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ANZ’s research arm said national home prices will continue to be driven by the gap between supply and demand.
Perth will lead the charge with housing prices already up 14.2% in the calendar year to date.
Brisbane and Adelaide are also seeing strong growth at almost 9% year to date.
ANZ analysts expect the heat in those markets to continue, forecasting Perth prices will rise by more than a quarter in 2024 at 25.1%.
They expect Brisbane and Adelaide housing prices to increase by about 15%.
Most other capitals will see more modest growth, according to the projections, with Sydney housing prices to climb 4.2%, Canberra 2%, and Darwin 2.4%.
Melbourne on the downturn
By contrast, Melbourne’s housing prices are forecast to fall 1.7% in 2024.
ANZ data shows they’ve already dropped 0.9% this calendar year and momentum continues to “look soft”.
Hobart is the only other capital city expected to record a drop in 2024, losing a marginal 0.7% by the 2024 calendar year.
Slowing growth ahead
But there’s good news for those seeking to get a foothold in the housing market.
ANZ’s projections show a slowdown in housing price growth across the board in 2025.
Nationally, ANZ analysts predict capital city housing prices will rise 5.5% next year, slowed by a cooling in the boom markets.
They forecast the Perth market will record 7.4% growth in 2025, with Brisbane rising 6.4% and Adelaide 5.7%.
The bank’s forward projections also show a recovery to modest growth in the Melbourne and Hobart markets next year.
Looking further ahead, growth is expected to continue at around 5.5% nationally for 2026 with Sydney leading the price charge recording 6.6% growth.
Image by Breno Assis on Unsplash
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