Australian house prices: The three cities tipped to lead gains this year

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Australian house prices: The three cities tipped to lead gains this year
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Across the nation, the housing rebound is proving resilient despite higher borrowing costs, and a panel of 10 experts tips median gains of 5 per cent nationally.

Already a subscriber?Perth is tipped to post house price gains of up to 16 per cent this year – with Brisbane and Adelaide not far behind – as the surging demand for housing in more affordable cities outstrips the supply of homes, according toAcross the nation, the housing rebound is proving resilient despite higher borrowing costs, and a panel of 10 experts tips median growth of 5 per cent nationally. The price gains are expected to be more subdued in Sydney and in Melbourne .

“Perth’s outer suburbs were incredibly cheap and a lot of it had to do with high levels of building over a prolonged period. This building isn’t taking place and the ones that are being built are costing a lot more,” she said.The panel of property analysts and economists expects gains of up to 10 per cent or more this year in Adelaide and Brisbane.

So what is driving the market? Ms Masters said housing finance figures showed the type of buyer in the market was shifting in favour of higher quality borrowers, who were purchasing on relatively low loan-to-value and debt-to-income ratios. They were buying in a market where total listings were below the five-year average, especially in Brisbane.

Upgraders and downgraders constituted the second and fourth-largest segment of the market, CBRE’s research head, Sameer Chopra, said.

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