Most capital cities could see house and unit prices reach record levels by year's end, report suggests
Canberra’s house prices are expected to begin a gradual recovery during the 2025 financial year, according to the latest Domain House and Unit Price Forecast.
Nicola Powell (pictured above), Domain’s chief of research and economics, noted that the nation’s capital has struggled to establish a firm recovery, projecting a moderate increase in house prices from the current median of $1,049,719.
“Even if the upper growth range materialises, house prices will remain $85,000 below the mid-2022 peak, with forecasts ranging between $1.05 million and $1.09 million,” she said. “The best-case scenario places house prices almost halfway through recovery.”
For units, Powell forecasted a price increase of 1% to 4%, setting prices between $571,000 and $588,000.
“Unit prices will still be $38,000 to $55,000 lower than the September 2023 record, at best positioning the city just over one-third into a recovery,” she said.
The Domain report indicated that most capital cities could see house and unit prices reach record levels by the end of financial year 2025, except for Canberra and Melbourne. Sydney, Adelaide, Brisbane, and Perth are expected to lead the price gains, while regional areas are predicted to experience slower growth.
A constrained supply is anticipated to be the main driver of property prices in the short term, with land scarcity, weak building approvals, and high construction costs contributing to continued price increases across most cities over the next financial year.
The report also highlighted that a growing population, bolstered by strong migration, is a significant factor supporting property price growth.
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