Australian house prices set to surge across the country
A new KPMG report reveals one capital will punch well above its weight
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Hobart is set to be the new property hotspot over the next two years as house prices surge across the country, a new report from KPMG has shown.
The southern capital is expected to overtake Perth, where house prices will be strongest in the short term, rising by 8.4 percent over the second half of 2024, to increase by 14.2 percent in 2025.
Not surprisingly, the Melbourne and Sydney markets will experience long term price rises, up by 12 percent and 10.3 percent respectively to June 2025.
The KPMG report revealed that prices will increase nationally by 4.9 percent over the next nine months before a 9.4 percent uptick by June 2025.
KPMG chief economist Dr Brendan Rynne said a lack of supply had overtaken concerns about the impact of interest rate rises.
“Despite high interest rates, constrained supply will likely dominate the factors influencing property prices in the short term and result in continued price gains in most markets during FY24,” Dr Rynne said. “House and unit prices will then accelerate further in the next financial year as dwelling supply continues to be limited, due to scarcity of available land, falling levels of approvals and slower or more costly construction activity.”
Demand will be further fuelled by higher levels of migration, he said, while anticipated interest rate cuts in 2025 could well draw more buyers into the market, putting further pressure on prices. From a supply perspective, he said barriers for developers building new homes was hindering the availability of future stock.
Dr Rynne said the impact of mortgage stress was still a potential factor putting downward pressure on prices but had been outstripped by market demand.
“There are some factors pushing the other way – the main one being mortgage stress,” he said. “First-time buyers now need to use around half their earnings on mortgage payments – a significant rise from a third just three years ago.
“We estimate around $350 billion of mortgages, or half of all fixed rate credit will expire this year – covering 880,000 Australian households. The remaining 38 percent of fixed rate credit, which includes about 450,000 loan facilities, will expire in 2024 and beyond. Some homeowners who previously locked in low rates might be unable to pay – and won’t be able to refinance to a lower and competitive rate.”
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
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Spring Hill Enviro-Cottage is the ultimate fairytale of old meets new, an architectural marriage of two distinctly different eras that seamlessly come together in 21st-century Brisbane.
The Isaac Street home is one of Spring Hill’s original workers’ cottages that in 2010 was expertly transformed into a uniquely sustainable home with all the modern-day must-haves and plenty of boxes ticked on the wish list too.
While preserving the classic Queenslander, the 286sqm property has been reimagined to deliver an innovative and eco-friendly address.
Kitchen joinery has been crafted from reclaimed timber, there is environmentally friendly paint, a suite of energy efficient appliances, solar power, underground water storage, and an Eco Plunge Pool.
Although the charming period facade remains, the rear of the house has an ultra contemporary backdrop of patterned Corten steel privacy screens that minimise heat and create dappled light across the interior spaces. At night, the unique partition’s geometric laser-cut design provides a star-like feature in the main bedroom suite.
The considered passive design principles extend to the strategically located louvres, doors and windows that draw in cooling breezes, while a vast skylight over the dining area and kitchen allows for plenty of natural light in winter. Burnished concrete floors keep the ground cool and grand walls of glass peel back to reveal a seamless flow to the outdoors with a grassed and landscaped private courtyard.
Although the ground floor has been designed for everyday living and entertaining, the multi-purpose front room with ensuite is an ideal guest retreat or even a perfect ‘work from home’ space complete with a separate entry via the front patio.
Upstairs, a mezzanine lounge provides another breakout area for families, and the two first floor bedrooms open out to the traditional full-width balcony overlooking the street. These bedrooms have built-in wardrobes and desks with a shared family-friendly bathroom.
At the rear of the footprint, a freestanding two-storey pavilion features yet another living space next to the pool with an integrated bar. Above the space the top floor main bedroom has an ensuite and walk-through wardrobe.
A long list of bonus features include ceiling fans in all bedrooms and living areas, a thermostat-controlled whirlybird to extract excess heat, a 5kW solar system with a SMA Sunny Boy inverter, a 20,000L rainwater tank, a filtering and UV disinfection system and a solar hot water system with 450L storage tank.
Although there is a lock up garage, this city-fringe home is within walking distance of Roma Street Parkland, Roma Street Station and Victoria Park. Brisbane Central State School is also only two streets away.
In keeping with Queensland consumer law, properties going under the hammer cannot carry advertised price guides.
This Brisbane home at 32 Isaac St, Spring Hill is on the market with Ray White New Farm with an auction date set for November 30. For details contact agent Samuel Angus on 0411 044 949.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
