Australian Property Prices Forecast to Continue Rising Despite Affordability Concerns

Despite ongoing affordability challenges, Australian property prices are forecast to continue their upward trajectory through 2025, driven by fundamental supply and demand imbalances.

National Trends

‍CoreLogic data shows Australian home values increased by 4.9% in 2024, adding approximately $38,000 to the median property value. This growth has continued into 2025, with the national median dwelling value reaching $815,912 by February.

Regional Variations

‍Growth patterns vary significantly across capital cities:

• Brisbane: Expected to see 5-7% house price growth, supported by 2032 Olympics infrastructure
• Perth: Continuing strong performance with 7-9% growth projected, driven by mining sector strength
• Adelaide: Sustained growth of 7-9% as lifestyle appeal attracts buyers
• Melbourne: Modest recovery expected with 3-5% growth as market stabilizes
• Sydney: Market showing signs of stabilization after previous declines

Supply Constraints

‍Housing supply remains a critical factor, with dwelling approvals at 163,760 in FY2024 - well below the National Cabinet's target of 240,000 new homes annually. This ongoing shortage continues to support price growth despite affordability pressures.