In Sydney, the median house price is projected to increase by 7% in 2025-26, reaching approximately $1.83 million by June 2026. This represents a substantial rise of $112,000, surpassing the average annual pre-tax income of a full-time worker, which stands at $103,000. Melbourne is also anticipated to experience growth, with median house prices expected to climb by 6% to $1.1 million during the same period.
While Brisbane, Adelaide, and Perth have traditionally been considered more affordable, these cities are not immune to the upward trend. The median unit price in Brisbane is forecasted to rise by 5% to $701,000, while Perth and Adelaide are expected to see increases of 6% and 3%, reaching $552,000 and $586,000, respectively.
Several factors contribute to this projected price escalation. The Reserve Bank of Australia's recent interest rate cuts have made borrowing more accessible, thereby increasing demand. Additionally, strong population growth continues to drive housing demand, further intensifying competition in the market.
For first-home buyers, these developments underscore the importance of strategic planning and thorough market research. Exploring government assistance programs, such as the expanded First Home Guarantee Scheme, can provide valuable support. This scheme allows eligible buyers to purchase a home with as little as a 5% deposit, with the government acting as a guarantor for the remaining amount, thereby eliminating the need for Lenders Mortgage Insurance (LMI).
In light of these forecasts, prospective buyers should also consider alternative pathways to homeownership. Investing in units or townhouses, which may offer more affordable entry points, or exploring emerging suburbs with growth potential could be viable strategies. Additionally, seeking professional financial advice to assess borrowing capacity and develop a tailored savings plan is advisable.
While the projected rise in property prices presents challenges, it also highlights the dynamic nature of the Australian housing market. Staying informed and proactive will be key for first-home buyers aiming to navigate this evolving landscape successfully.
