Property prices are expected to grow by at least 8% in 11 of Australia’s largest cities this year, with Townsville seeing the highest increase.
Townsville’s prices are projected to grow by 25 to 30%, according to a report by Propertyology. Sydney, Melbourne, and Canberra are likely to see a drop in property prices.
“In 2025, residential real estate will again perform very strongly throughout all of Western Australia, Queensland, and South Australia,” according to the report.
“Conditions in Tasmania and Northern Territory are likely to be on a gradual improve.”
As well as Townsville, Queensland cities like Sunshine Coast, Gold Coast, and Toowoomba are projected to see double digit increases in 2025. Brisbane could also reach this level, with growth of 7 to 10% expected.
Perth is expected to see the highest growth of any state or territory capital. Prices are likely to increase by 10 to 14%.
While Sydney’s prices are set to fall by 2 to 5%, prices in other New South Wales areas are likely to rise. Lake Macquarie, Central Coast, and Albury-Wodonga are expected to see the greatest increases, with Propertyology expecting growth in all three at 3 to 6%.
Price drops are forecast across Victoria, with Ballarat likely to post the largest decline at 3 to 7%. Melbourne’s prices are expected to fall by 1 to 2%. Bendigo is the only Victorian city that may see growth this year, with prices set to rise by 0 to 2%.
Over 272,000 houses are currently for sale in Australia, according to the report, around 25% lower than 10 years ago. Almost 42,000 houses are advertised for rent, a 37% decrease over 10 years ago.
More than 538,000 new houses have begun construction in the last three financial years.
