House prices are tipped to soar in the coming year despite the aggressive rate hikes because of immigration.
Property market group Domain is forecasting a six to nine per cent surge in Sydney house prices between now and June 2024 and a two to five per cent increase in unit values.
Melbourne house prices were tipped to increase by zero to two per cent.
The predictions are being made even though the Reserve Bank has already raised rates 12 times since May 2022, with economists at Westpac, NAB and ANZ expecting two more hikes in July and August that would take the cash rate to a 12-year high of 4.6 per cent.
House prices are tipped to soar in the coming year despite the aggressive rate hikes because of immigration (pictured is a Sydney auction)
Read Related Also: All 237 Lloyds Pharmacy branches inside Sainsbury’s supermarkets will close for ever TODAY
Dr Nicola Powell, Domain’s Chief of Research and economics, said high immigration would drive a house price recovery.
‘Population pressures will lead the charge in factors driving housing demand and property prices higher over the next 12 months,’ she said.
‘Australia has seen an exponential increase in temporary and permanent migration since the international border reopened in late 2021 to alleviate skills shortages.
‘Of course, unlike natural population growth, those arriving from overseas aren’t already housed.
‘This puts us in a position where in the next financial year alone, nearly 130,000 extra dwellings will be needed, with the eastern seaboard receiving the largest share of migrants.’
