The Australian property market continues to show strong growth into September, with Sydney, Brisbane, Perth, and Adelaide leading the way. However, each market comes with its own challenges and opportunities. Whether you’re investing in Perth with its recent boom or looking at Brisbane’s long-term potential, staying informed and making strategic decisions is key.
Sydney Property Prices
Sydney’s property market is set for another significant boost, with house prices expected to rise by 8% over the next year, according to a recent report by Domain. By the end of this financial year, the average house price in Sydney could increase by $130,000 to $400,000. Fast forward to the end of July next year, and we’re looking at a $132,000 jump in the median house price.
Brisbane, Perth, and Adelaide Peaks
Sydney isn’t the only city expected to see growth. Brisbane, Perth, and Adelaide are also on track to hit new price peaks in the next 12 months. However, Melbourne and Canberra might not reach new highs. So, what’s driving these price increases? It comes down to two simple factors: limited supply and a growing population. With more people coming into Australia and fewer properties available, demand is outstripping supply, leading to rising prices.
The Perth market has been particularly noteworthy, with a remarkable 34.8% increase over the past two years. However, the sustainability of this growth is up for debate. The big question is whether local buyers can continue driving property prices up once investors from the eastern states pull back. From 2012 to 2022, Perth’s market grew by just 10%, averaging only 1% per year. While returns in Perth might still be good, what happens when the eastern money dries up? Will locals be willing to pay the high prices that investors have been driving up recently? That’s the big unknown.
On the other hand, Brisbane presents a different picture. The fundamentals in Brisbane suggest much better long-term prospects, especially looking towards 2032. Many savvy investors are already taking significant action in Brisbane, seeing it as where the smart money is going. The city’s future growth potential makes it a standout in the current market.
Growth in Key Cities
Looking closer at recent reports, Perth is predicted to lead the pack with a 10% increase, followed by Adelaide at 9%. Sydney and Brisbane are both expected to see an 8% rise in property prices. On average, Australia is projected to experience a 6% increase across both regional centres and metropolitan areas.
This predicted growth comes on the heels of impressive gains over the last 12 months. Perth, for example, has seen a 24.8% rise in property prices, Adelaide 14.5%, Brisbane 14.3%, and Sydney 7.7%. Australia, as a whole, has averaged a 9.5% increase. This kind of growth is what we mean when we talk about being in a boom. The boom is here, and it’s essential to take advantage of it while it lasts.
