‘$100K a year’: home prices set to surge

Aussie home prices could grow by as much as $100k a year over the next two years, due to a variety of factors impacting different market in different ways, new data shows.

In great news for homeowners, less so for those looking for their first home or wanting to upgrade, real estate values are set to increase by as much as $200,000 on average in parts of Australia over the next two years.

According to exclusive data supplied to News Corp by KPMG and PropTrack, home prices across most of the country will surge skyward through to the end of 2025, due to a variety of factors, impacting different market in different ways.

SYDNEY HOME PRICES IN 2025

Sydney’s rollercoaster housing market is primed to blast up again over the next two years, with property buyers expected to pay an average of $1.53m for a house and $850,000 for a unit by mid-2025.

The lofty house prices will be about $200,000 higher than what current buyers pay, on average, while unit buyers will be paying about $100,000 more, exclusive price modelling showed.

The forecasts revealed median prices will also exceed $2m for the first time in 43 suburbs in the next two years, increasing the total suburbs in this category to over 200 – or roughly a third of the city.

More on what Sydney’s home prices are expected to be in 2025

MELBOURNE HOME PRICES IN 2025

Melbourne homeowners could be set to cash in after forecasts it will become a million-dollar city again by 2025.

And the growth surge could see almost 70 suburbs rise to seven-figure housing markets in the next two years.

Consultancy firm KPMG’s property price predictions show the city’s median house price could hit $1,024,495 by June, 2025.

Applied to suburban PropTrack data, the forecast would raise house prices past the seven-figure mark in 68 Melbourne suburbs in the same timeline.

Ringwood East is on track to add a whopping $173,755 to its median house price in fewer than two years to hit a forecast $1,167,321, while northeast ‘burbs like Briar Hill, Diamond Creek and Greensborough are also slated for hefty gains that will see the postcodes soar above $1m.

KPMG chief economist Dr Brendan Rynne said the predictions were based on a range of factors likely to continue pushing property prices up including a lack of housing supply.

More on what Melbourne’s home prices are expected to be in 2025

BRISBANE HOME PRICES IN 2025

Queensland first home buyers could find themselves priced out of a staggering 543 suburbs within two years if a bold prediction of another “surge” in price growth comes to fruition.

KPMG’s latest property report has tipped that Brisbane house values will grow 2.8 per cent by June next year, and another 4.2 per cent in the 12 months to mid-2025.

When that forecast is applied to PropTrack’s median home price data across Brisbane and the state as a whole, it paints a grim picture for those still trying to get a foot on the property ladder.

Median house prices in 35 suburbs in some of the state’s most affordable regions could push past the first home concession ceiling of $550,000, making buyers ineligible for the maximum stamp duty reprieve.

More on what Brisbane home prices are expected to be in 2025

ADELAIDE HOME PRICES IN 2025

Adelaide could have an extra 21 suburbs in its million-dollar club by mid 2025 if house prices rise as much as they are tipped to over the next two years.

An analysis of KPMG and PropTrack data reveals the city could go from having 54 suburbs with a million-dollar median house price in June this year to 63 by mid 2024 and 75 a year later.

Adelaide could have an extra 21 suburbs in its million-dollar club by mid 2025.

The predictions are based on the assumption prices in every suburb will rise at the same rate KPMG has forecast for Adelaide as a capital city, which is 5.8 per cent between now and June next year and a further 6.8 per cent by June 2025.

By those figures, Adelaide’s median house price will jump from $680,000 as of June 2023 to $719,440 next year and $768,362 the following.

More on what Adelaide home prices are expected to be in 2025.

Originally published as ‘$100K a year’: home prices set to surge