The Australian property market is set for substantial growth, with KPMG forecasting a national house price increase of 5.3% over the next six months and a further 5.6% rise throughout 2025. Apartment prices are also projected to climb by 4.5% by the end of 2024, followed by a 5.6% increase in 2025.
Despite facing high interest rates, inflation, and subdued consumer sentiment, the property market has demonstrated remarkable resilience, delivering strong price growth. KPMG’s chief economist, Dr. Brendan Rynne, attributes this resilience to several factors, including continued demand and limited housing supply. “Many barriers remain to developers building new homes, while continuing high rental costs are pushing renters to look to buy instead, which is pushing up demand,” Rynne explains.
Foreign investment in the property market has not yet returned to the levels seen two years ago, but Rynne remains optimistic about future growth. “Overall, we will still see solid price gains over the next 18 months, especially in 2025, as the RBA starts to introduce rate cuts, as we anticipate,” he says.
At Luminur Projects, we are excited about the future prospects of the Australian property market. As leaders in off-the-plan property sales and development, we are committed to helping our clients navigate this period of anticipated growth. Our expertise and innovative approach enable us to provide valuable insights and solutions for both developers and buyers, ensuring success in a dynamic and evolving market.
