The Financial Year 2024 has just been concluded, and this marks the perfect time to look ahead and explore what the Australian Property market holds for the coming financial year. Investors, homeowners, and real estate enthusiasts are keen to understand the dynamics that will shape the market in the Financial Year 2025.
Will the trends from the past year continue, or will new patterns emerge?
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.
The comparison between Domain’s FY2024 and FY2025 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.
Will Brisbane, Adelaide, and Perth Hit the Million-Dollar Mark in the Australian Property Market by FY2025's End?
Brisbane Property Market
Brisbane house prices were projected to be very close to a new record high by the end of FY24, with forecasted 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 Australian Property Market in Brisbane remains vibrant and attractive to property investors due to its economic factors and ongoing infrastructure development.
Additionally, Hotspotting 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
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 in the Australian Property Market.
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 hotspot for investors in the Australian Property Market.
Adelaide Property Market
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, further strengthening its position in the Australian Property Market.
Tea Tree Gully
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 Australian Property Market in the local real estate sector.
Charles Sturt
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.
Perth Property Market
For FY2024, Perth house prices are projected to reach a new record high, with forecasted growth of 1% to 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% to 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 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 Perth
City of Wanneroo
City of Greater Geraldton
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.
High Income Property specialises in delving deep into the market to uncover hidden gems and lucrative investment opportunities. Trust us to guide you towards properties in prime locations that offer not only attractive rental returns but also long-term growth prospects. To discuss your options, schedule an online meeting or call (02) 8007 4001.