by Sanjeev Sah | Jul 16, 2024 | Market Updates
Property prices are expected to continue rising over the next financial year, according to Domain’s latest forecasts.
As the table shows, prices for both houses and units are expected to grow in all capital cities. In the regions, the pattern is similar with only regional Victoria that might see a decrease in house prices.
According to Domain, there are three major reasons for this sustained growth:
- Population: Australia’s strong population growth, with increased migration and more single-person households, is creating a housing shortage. This is putting upward pressure on prices.
- Construction: Limited land, high construction costs and labour shortages are preventing new homes from being built quickly enough to meet demand.
- Borrowing power: July’s tax cuts will increase consumers’ borrowing power. This may allow more people to enter the market, or increase the budgets of existing buyers. Either way, there will be added demand.