Are Home Prices Set to Rise in the Next Year?

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Australian Property Prices: What’s Next Through Mid-2025?

Property prices in Australia are expected to continue rising through to mid-2025, but not uniformly across all regions, according to a new report. We reveal the areas where prices are projected to increase and those where they might decline.

Reflecting on a Tumultuous Financial Year for Property Prices

Despite challenges like high living costs and soaring interest rates, Australian home values have surged by 8.3% over the past year, as reported by CoreLogic.

Will this upward trend persist, or will the market eventually cool down? These are critical questions for prospective home buyers contemplating the timing of their purchase.

To shed some light, we examined Domain’s latest forecast report, which outlines expected property price trends for the next 12 months.

The Big Picture: Continued Price Increases

Domain predicts that several factors will continue to drive up Australian home prices over the next year. On the supply side, there’s a limited number of new homes being constructed and fewer existing homes on the market. On the demand side, an increase in migration is fueling buyer interest.

Domain describes this dynamic as a “push-pull between affordability and availability,” which will shape the Australian property market through to June 2025.

Price Growth Varies Across Cities

However, property prices won’t rise uniformly across Australia. Here’s a look at Domain’s predictions for different cities (note that Hobart and Darwin were not included in the report).


Brisbane’s property market has seen a remarkable 16.3% price growth over the past year. Domain forecasts further growth of 6-8%, which could push the median house price to a record high of up to $998,500 by mid-2025. Apartment values are expected to rise by 4-6%.


Sydney’s median house price could reach a new record high of up to $1.76 million by mid-2025, with expected growth of 6-8%. Apartment prices are also set to hit a new median record of up to $855,000, based on predicted growth of 4-6%.


Melbourne’s housing market is expected to experience modest growth of 0-2%, keeping median house prices between $1.03 million and $1.05 million. However, unit prices could rise by up to 4%. In regional Victoria, Domain forecasts a decrease in house prices by 0-3% by mid-2025.


Adelaide might become a million-dollar city if the forecasted 7-8% price growth materializes, potentially pushing the median house price up to $984,000 by June 2025. Unit prices are anticipated to grow by up to 6%, exceeding the $500,000 mark.


Perth has experienced a 22% increase in home prices over the past year. Domain predicts further growth of 8-10%, which could result in a median house price of between $840,000 and $856,000 by mid-2025. Unit prices are expected to increase by 4-5%.


Canberra’s house prices are forecasted to rise by up to 4%, with unit prices increasing by 1-4%.

Factors to Consider

While Domain’s forecasts provide valuable insights, they are not guarantees. Factors like a tighter jobs market and stagnant incomes could exert downward pressure on prices.

Ultimately, the best time to buy is when you feel prepared to enter the market. While we can’t predict property prices with certainty, we can help you understand your borrowing power, assist with home loan approval, and find the right home loan to meet your needs.  Just call us on 1800-E-LOANS and we will spring into action to find you the most suitable home loan.

1800 35 62 67

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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