Australian house prices set to surge across the country
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Australian house prices set to surge across the country

A new KPMG report reveals one capital will punch well above its weight

By KANEBRIDGE NEWS
Wed, Sep 27, 2023 11:30amGrey Clock 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.”



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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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The ball is in the buyer’s court with this knockdown/rebuild opportunity

By KANEBRIDGE NEWS
Tue, Apr 18, 2023 2 min

Glenhaven in Sydney’s Hills District is one of those areas that locals tend to keep to themselves. Leafy with large blocks on offer, the suburb takes its name from its valley location, with the northern end originally known as the Glen and the southern end called the Haven. 

En route from Parramatta to the Hunter, Glenhaven has become an ideal place for growing families in search of a little more space, or even room to house several generations under one roof.

The challenge is finding properties that tick all the right boxes.

As demand for trades and supply chain issues continue to ease, now could be the right time for a knockdown/rebuild project for would-be buyers looking to create their dream home.

Fairmont Homes specialises in knockdown/rebuild projects in Sydney. General manager at Fairmont Homes, Daniel Logue, said there are key features to look for when choosing a knockdown/rebuild site.

“The key items we look for are the site falling to the street, not to the rear, to help with stormwater drainage as well as access to the site,” he said. “Neighbouring property front setbacks are also important. In some older areas, the older houses are set closer to the street, meaning your new home will have to be set to suit.

“Value for money and the return on the end sale price of the home is another issue.”

If possible, he said designing a home that meets the criteria of the Complying Development legislation will speed up approvals considerably.

While suitable knockdown/rebuild sites can be hard to find in Glenhaven, there are still hidden opportunities if you know where to look.

One block at 158 Gilbert Road, Glenhaven is ideally suited for rejuvenation. With almost 850sqm to play with, it slopes down to the street and sits between neighbouring properties that have already been stylishly updated.

 

 

An existing basketball court at the rear could provide the perfect teen backdrop to a family home, or it could make way for a larger house with landscaped gardens and pool. Alternatively, it could be the perfect position for a cabana or granny flat to serve as in-law accommodation or a source of secondary income.

With recent sales of completed homes in nearby streets reaching well above $5 million, it’s a great opportunity to make a slam dunk of a buy into one of Sydney’s best kept secrets.

Address: 158 Gilbert Road, Glenhaven
Price guide: $1.8 million
Inspection: By appointment only

 

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This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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