The Australian property market still has plenty of growth ahead of it according to KPMG.

It is forecasting that house prices will increase nationally by 5.3% in the next six months, and by another 5.6% over 2025. It says apartment prices will rise by 4.5% by the end of 2024 and in 2025 will increase by 5.6%.

KMPG chief economist Dr Brendan Rynne says the market has withstood a period of high interest rates, inflation and subdued consumer sentiment and still provided strong price growth. “Many barriers remain to developers building new homes while continuing high rental costs are pushing renters to look to buy instead which is pushing up demand,” he says.

“Foreign investment activity has also yet to regain its levels of two years ago. But overall, we will still see solid price gains over the next 18 months, especially in 2025, as the RBA starts to introduce rate cuts, as we anticipate.”