Real estate Australia: Where Aussie home prices could be in 2028

Home prices are expected to be in a very different place five years from now.

Despite current uncertainty around further interest rate rises and the cost of living squeeze, home prices in much of Australia are expected to increase by around 50 per cent over the next five years.

Many markets across the country are primed for strong growth over the next five years, primarily because not enough housing is being built to meet surging demand.

Tuesday’s Federal Budget did little to ease fears of a further homebuying and rent squeeze.

Record immigration of 1.5 million new people entering Australia through 2028 will continue to keep demand for homes, with high housing affordability set to remain a key issue for many Aussies.

There is also significant existing wealth in the housing market due to previous market booms, which means some homeowners are sitting on big stockpiles of equity they could use to bid up prices on their next home purchase.

This is where home prices are predicted to be in five years’ time.

2028 HOME PRICES IN SYDNEY, NEW SOUTH WALES

Million dollar unit prices and $2m house prices have been tipped to become the norm in Sydney by 2028, with home buyers in some suburbs expected to pay double current prices.

Exclusive PropTrack modelling has revealed Greater Sydney’s typical unit value would climb 33 per cent over the next five years if prices grew at the same average annual rate as the last decade.

Average house value increases would be even larger at 54 per cent over the five years, requiring buyers to fork up millions more than they’re currently paying in some areas.

2028 HOME PRICES IN MELBOURNE, VICTORIA

Melbourne’s inner-north and northeast suburbs are primed for massive boosts in their median home prices, while areas like Toorak and Middle Park could plunge by 2028, new data modelling predicts.

Exclusive data from PropTrack that applies the growth in a suburb’s median home price from the past five years to what it could be in 2028 shows suburbs like Eaglemont, Northcote and Fitzroy set to soar up to 60 per cent.

This comes despite Melbourne’s home prices falling 5.3 per cent in the past 12 months, according to the latest PropTrack Home Price Index.

2028 HOME PRICES IN BRISBANE, QUEENSLAND

Home prices in parts of greater Brisbane are forecast to climb by more than 70 per cent in the next five years, prompting experts to urge buyers to get in now before certain suburbs boom.

Exclusive analysis by PropTrack reveals home buyers will need to fork out an extra $200,000 to afford an average home in the city in 2028 if prices continue to grow at the same pace as the past five years, with the median projected to rise 32 per cent to $845,000.

2028 HOME PRICES IN ADELAIDE, SOUTH AUSTRALIA

Adelaide’s median home price would rise to nearly $900,000 in 2028 if the solid growth of the previous five years was repeated, according to exclusive PropTrack data.

Adelaide homes have experienced significant value growth over the past five years – with most of that coming during the last three – and new data shows what they could be worth if this growth repeats over the next five.