REA Group this week launched the PropTrack Property Market Outlook Report June 2024, a biannual report combining an analysis of the residential property market with an outlook for the year ahead.

Key findings from the report:

• Canberra property prices are expected to increase between 2 per cent and 5 per cent in the 2024-25 financial year (FY25), after rising 1.3 per cent over the financial year to date (FYTD).
• Strong buyer demand in Canberra has kept property prices resilient despite high interest rates and increased stock, with Stage 3 tax cuts and expected interest rate reductions in FY25 likely to further boost demand and prices.
• While Canberra’s home prices had recovered just under a third of their decline in May 2024 to be 1.2 per cent higher year-on-year, prices remained 4.6 per cent below their March 2022 peak.
• Canberra has recorded the highest increase in total stock of properties listed on realestate.com.au of all capital city markets, rising 32.4 per cent year-on-year.
• Despite an increase in stock, buyer demand has remained strong. In May 2024, the median days a property was listed on site was 35 days compared to 36 days at the same time a year earlier.
• Nationally, home prices are expected to rise by up to 5 per cent in FY25, with slowing price growth forecast for several capital cities but an uptick in price growth in the larger markets of Sydney and Melbourne.

PropTrack Director of Economic Research and report author, Cameron Kusher, said:

“Forecasting home price growth for the year ahead becomes increasingly challenging as we observe a property market that is proving to be far more resilient than anticipated.”

“Buyer demand remains strong despite interest rates sitting at 12-year highs, borrowing capacities falling and the volume of stock for sale increasing, leading property prices to rise at a faster rate than expected.

“Over the next financial year, the introduction of Stage 3 tax cuts and projected interest rate cuts have the power to further entice buyer demand while supply from new dwelling commencements and completions are expected to remain low.”