Domain’s Property Price Forecast Report for FY2025
Domain’s Property Price Forecast Report for FY2025 shows that the Australian property market will rise throughout the year.
A housing supply shortage is expected to drive this growth. Additionally, low building approvals, high construction costs, and increased migration boosting population growth will compound this effect.
The table below shows the expected changes in Australian property prices for different regions from FY2024 to FY2025, based on Domain’s forecast.
While certain regions are expected to stabilise or experience moderate growth, cities such as Brisbane, Perth, and South Australia emerge as strong markets for investment.
When comparing Domain’s FY2024 and FY2025 analysis, the Australian property market price forecasts highlights the market’s resilience and growth prospects. While certain regions are expected to stabilise or experience moderate growth, cities such as Brisbane, Perth, and South Australia emerge as strong markets for investment.
Which Capital City will reach the $1m threshold by FY2025?
Brisbane Property Market
Brisbane house prices were projected to be very close to a new record high by the end of FY24, with forecast growth of 1% to 4%. Looking ahead to FY25, Brisbane house prices are expected to reach a new record high between $980,000 and $998,500 if the projected growth of 6% to 8% materialises.
Furthermore, the Brisbane property market remains vibrant and attractive to property investors due to its economic factors and ongoing infrastructure development.
Hotspotting recent Investment Reports identify Inner Brisbane, Redcliffe Peninsula, Ipswich, the Olympic Precinct, and Logan City as top property investment hotspots in the region.
Inner Brisbane
The area is well-positioned to capitalise on significant infrastructure developments ahead of the Brisbane 2032 Olympics. In addition to that, ongoing projects like the Cross River Rail and potential Gabba redevelopment to improve connectivity and further enhance the precinct’s appeal.
Redcliffe Peninsula
Since opening the Redcliffe Peninsula Line in 2016, the area has seen rising demand due to ongoing gentrification and a trend toward affordable coastal living. Moreover, the $1.2 billion rail network connects the Peninsula to Petrie and key Brisbane areas, stimulating development. Consequently, Redcliffe has positioned itself as a top hot spot for investors.
Ipswich
As a thriving economic hub, the area experiences rapid population growth, expected to double by 2046. Additionally, identified as the fastest-growing region in Southeast Queensland, it benefits significantly from ongoing infrastructure and transport developments.
Olympic Precinct
The Olympic Precinct is set to grow as Brisbane gears up for the 2032 Olympics and Paralympic Games. Consequently, winning the bid has sparked optimism and driven development in key areas throughout Brisbane.
Logan City
Located between Brisbane CBD and the Gold Coast, Logan City is experiencing rapid growth due to significant developments and expanding job opportunities. As a result, these factors make this area an attractive hot spot for investors.
Perth Property Market
For FY2024, Perth house prices are projected to reach a new record high, with forecast growth of 1% – 3%, resulting in median prices ranging from $704,000 to $718,000.
Looking ahead to FY2025, a significant increase is expected, with house prices projected to reach a new record high between $840,000 and $856,000, reflecting growth of 8% – 10%.
Lastly, according to Hotspotting reports, top property investment hotspots in the region include the City of Bunbury, the City of Perth, the City of Wanneroo, the City of Greater Geraldton, and Belmont LGA.
City of Perth
Boasts as one of Australia’s tightest rental markets, attracting investors due to rising rents and strong yields. Additionally, ongoing investments in the resources sector and job creation are expected to sustain the city’s economic growth in the years ahead.
City of Bunbury
Bunbury’s low vacancy rates and higher housing market yields compared to Perth have caught investors’ attention. This positions it as a prime location for price growth by 2024. Moreover, government plans for additional infrastructure and transportation investments further enhance its appeal as a promising area for businesses and residents alike.
City of Wanneroo
Strong population growth, driven by a robust resources sector and effective pandemic management, has led to a thriving property market in Wanneroo. Furthermore, the area’s appeal is bolstered by an influx of young homebuyers and affordable housing options
City of Greater Geraldton
As the largest regional centre north of Perth, Greater Geraldton is poised for further market growth with major infrastructure projects. Moreover, the city’s strong economy and affordable housing are driving notable growth in the property market.
Belmont LGA
Located close to Perth CBD, Belmont has thrived due to the urban regeneration of East Perth, which has created jobs and enhanced lifestyle amenities. Additionally, the area boasts a robust economy, with a gross regional product exceeding $18 billion.
Adelaide Property Market
Adelaide house prices were projected to reach a new record high by the end of FY2024, with expected growth of 2% to 5%, pushing the median price between $837,000 and $861,000, surpassing $800,000 for the first time.
Looking ahead to FY2025, stronger growth is forecast, with prices expected to rise by 7% to 9%, reaching a new record high of $965,000 to $984,000. However, this rapid growth may be tempered by affordability challenges.
Adelaide’s property market and economy are thriving, boosted by South Australia’s recognition as Australia’s strongest economy in early 2024 according to the CommSec State of the State Report. This robust economic performance continues to support Adelaide’s property market, known for its consistent growth in recent years.
Additionally, Hotspotting investment reports highlight Onkaparinga, Tea Tree Gully, Salisbury, Charles Sturt, and Mount Barker as top property investment hotspots in the region.
Onkaparinga
It stands out as a prime investment destination, consistently ranking high in Hotspotting analyses of the Adelaide market. Additionally, convenient transportation options and proximity to major employment hubs add to its appeal. Moreover, the area’s growing population will benefit from the State Government’s $1 billion plan to build 4,000 homes in Sellicks Beach and Hackham.
Tea Tree Gully
Emerges as a preferred destination for property buyers, primarily because of its low vacancy rates. Furthermore, the consistently high demand for properties adds to its attractiveness.
City of Salisbury
Despite COVID-19 challenges, the City of Salisbury has thrived. Growth in construction activities drives this success. Notably, several projects, including a significant $139.5 million contract with Boeing Defence Australia, have generated thousands of jobs. As a result, these developments have positively impacted the local real estate market.
Charles Sturt
The suburbs within the City of Charles Sturt, located near the $3.8 billion Adelaide BioMed City and within walking distance of Adelaide CBD, are poised for significant growth. Moreover, Adelaide’s status as home to one of the largest health and life sciences precincts in the Southern Hemisphere enhances real estate value in the western Adelaide suburbs.
Mount Barker
Mount Barker attracts young families and first-time homeowners with house prices significantly lower than the Adelaide median. Moreover, new estates like Martindale, Bluestone, and Glenlea offer quality housing with suburban comforts and a rural ambiance.
Australian Cities share the same common issues : resulting in Investors Opportunities !!
Land scarcity, trade scarcity, population growth, low new build supply, low new build approvals, increasing construction costs, increasing demand …. a perfect storm brewing to ensure capital growth Australia wide.
YOUR investment opportunity !!!
