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The median house price in the capital is projected to climb by $51,569, reaching a significant milestone of $1.1 million.
Meanwhile, projections for Brisbane are even more optimistic, with the bank forecasting a 9.7 percent increase in property prices. This would mean a $54,919 boost in the median house price, bringing it to $1.26 million.
However, the story is quite different in Australia’s two largest cities, where property values are under pressure. Continuous interest rate hikes and rising living costs are stretching borrowers’ limits, leading to a downturn in these markets.
In Melbourne, house prices are expected to decline by 1.7 percent, while Sydney is anticipated to experience a 0.9 percent drop.
“Australia’s property market is currently experiencing a split,” remarked Sally Tindall, Canstar.com.au’s data insights director. “It’s a tug-of-war between the banks’ lending capacity and the urgent demand for housing.”
“The rate hikes have pushed Sydney house prices to their limit, at least for now, which, at a median price of $1.6 million is far from surprising.”
Consumer confidence has taken a nosedive since the latest eruption of war in the Middle East almost two months ago, with Westpac predicting a further three rate hikes this year.
This would result in the borrowing capacity of a single person earning an average full-time wage falling by $58,700 this year.
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