Property Prices Tipped To Rise Faster Than Expected

KPMG has revised its national property outlook, forecasting stronger price growth in 2025 than previously expected.

House prices are now expected to rise by 4.9% in 2025, up from KPMG's earlier forecast of 3.3%. The revision follows earlier-than-expected cash rate cuts by the Reserve Bank of Australia in February and May, which have boosted buyer confidence and turned around the subdued conditions seen in late 2024.

KPMG also forecast that unit prices would rise faster than houses, climbing 4.5% in 2025 and 5.1% in 2026, as affordability pressures continue to push buyers toward more accessible housing options. In 2026, house price growth is tipped to moderate to 4.5% as lower rates, improved supply and normalised population growth support more sustainable conditions.

The report notes that while momentum is building, housing affordability remains a key constraint. With prices continuing to outpace income, many households may increasingly turn to apartments, townhouses and units as a way of entering the property market.

Contact me if you’d like to discuss what these forecasts could mean for your property plans or borrowing strategy.