Nationwide property costs are forecasted to extend between 1% and 4% within the upcoming 12 months, in line with REA Group, which has launched the PropTrack Property Market Outlook Report December 2023.

The bi-annual report, which mixed an evaluation of the residential property market with an outlook for the 12 months forward, discovered that the present rebounding in house costs was prone to proceed in 2024.

“Australia’s property market proved resilient in 2023. Residence costs have elevated 5.5% to date this 12 months to a report excessive, regardless of deteriorating housing affordability and rate of interest rises considerably lowering borrowing capacities,” mentioned Cameron Kusher (pictured), PropTrack director of financial analysis and report creator.

“Nationally, we anticipate costs to develop between 1% and 4% in 2024. We anticipate {that a} mixture of continued sturdy demand and restricted new housing building will contribute to cost positive factors, albeit at a slower tempo than what we skilled this 12 months,” he mentioned.

Kusher additional mentioned that stage three tax cuts will start in July, which might be useful for increased revenue earners and will result in a rise in increased priced housing demand.

“Rates of interest are actually at a 12-year excessive, and whereas they remained regular in December, there’s a risk of future will increase, which might have an effect on purchaser and vendor sentiment,” mentioned Kusher.

Contemplating the present market momentum and predictions concerning housing provide, rates of interest, and impression of fee rises, costs in Sydney and Melbourne are anticipated to rise however at a slower tempo than what was seen in 2023.

Perth, Adelaide, and Brisbane are probably to guide the rise in house costs throughout the nation following their constant positive factors in 2023. Smaller capital cities equivalent to Canberra, Hobart, and Darwin might even see slight declines or reasonable positive factors over the 12 months.

“Reflecting on 2023, a variety of elements drove the house worth rebound. The amount of inventory out there on the market remained at persistently low ranges whereas purchaser demand additionally elevated considerably, fuelled by a housing scarcity and powerful inhabitants development. It’s possible these tendencies will proceed into 2024,” mentioned Kusher.