NATIONAL property prices are expected to increase by up to five per cent in 2023, having already lifted more than two per cent since the start of the year.<\/p>\n
The strongest growth is expected to be in Perth with growth of between four and seven per cent, according to a report by REA Group.<\/p>\n
Sydney and Adelaide property prices are forecast to increase by between three and six per cent, while Brisbane is heading for between one and four per cent growth.<\/p>\n
Melbourne prices are predicted to grow at a slower rate of up to two per cent, although they might record a small dip by the end of the year.<\/p>\n
The forecasts are based on a prediction that the RBA’s series of interest rate rises is nearing its peak.<\/p>\n
Report author Cameron Kusher said a limited supply of properties for sale remained a key factor contributing to buyer competition and price growth.<\/p>\n
“We saw price increases despite rising interest rates and reduced borrowing capacities and anticipate moderate price increases to continue over the coming months,” he said.<\/p>\n
Mr Kusher said the outlook for 2024 was less clear with a large cohort of fixed-rate borrowers’ mortgages set to expire from current interest rates of around two per cent and reset to around six per cent.<\/p>\n
“Interest rate changes act with a lag and, as such, the possible impact of higher repayments on these borrowers won’t be seen until 2024,” he said.<\/p>\n
“At this stage, we are forecasting modest price growth in 2024.”<\/p>\n