Australian house prices set to surge across the country
A new KPMG report reveals one capital will punch well above its weight
2 min
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.”
Brickworks has enlisted acclaimed architecture studio Kennedy Nolan to explore how homes could become more adaptable, energy-efficient and connected to community.
Ophora Tallawong has launched its final release of quality apartments priced under $700,000.
Brickworks has enlisted acclaimed architecture studio Kennedy Nolan to explore how homes could become more adaptable, energy-efficient and connected to community.
2 minAustralia’s housing debate is often dominated by affordability and supply, but a new collaboration between Brickworks and acclaimed architecture firm Kennedy Nolan argues the conversation should also focus on the quality and longevity of the homes being built.
The project, titled Our Next Neighbourhood, examines how suburban housing could evolve in response to shrinking block sizes, rising energy costs, increasing density and changing family structures.
Rather than proposing luxury dream homes, the initiative focuses on what its creators describe as achievable suburban housing models that are more flexible, sustainable, and better suited to modern Australian life.
Brickworks commissioned Kennedy Nolan to investigate what suburban housing might look like if “design, long-term liveability and enduring materials were placed at the centre of the conversation”.
The result is two housing concepts, known as the Street Terrace and Canopy Terrace, which explore higher-density living while maintaining access to green space, natural light and privacy.
The designs incorporate adaptable floorplans that can evolve as family needs change, along with passive design principles intended to reduce reliance on mechanical heating and cooling.
Brett Ward, General Manager of Marketing at Brickworks, said the company wanted to broaden the discussion around housing beyond simply increasing supply.
“Much of the housing conversation today is understandably focused on supply and affordability, but there is an equally important discussion to be had about the quality and longevity of the homes we build,” he said.
“We wanted to explore how thoughtful design, combined with durable, resilient materials, could create homes that not only function well today, but continue to support Australian families and communities long into the future.”
Kennedy Nolan said the project was partly inspired by concerns that contemporary housing often struggles to adapt to changing household structures and environmental pressures.
The architects said innovation in suburban housing was “essential” to address changing family groupings, energy use, urban heat island effects and growing disconnection from place.
According to the design team, the concepts draw on lessons from some of Australia’s most influential housing projects while seeking to create neighbourhoods with stronger links to landscape, community and local identity.
Rachel Nolan, founder of Kennedy Nolan, said the practice saw an opportunity to reimagine suburban housing as something “more connected to our climate, our landscape, our communities and our Australian identity”.
The project comes as policymakers, developers and planners continue searching for ways to deliver more housing without sacrificing liveability, neighbourhood character or long-term sustainability.
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