House prices will rise almost 15 per cent nationally by June 2025, with limited property supply, heavier migration and anticipated interest rate cuts fuelling the growth.

The significant prediction comes from big four accounting firm KPMG, in its Residential Property Market Outlook, September 2023.

Over the next nine months, KPMG tips house prices will climb 4.9 per cent, before a 9.4 per cent surge in the year to June 2025.

Apartment prices are also tipped to jump, with an average rise of 3.1 per cent forecast between now and June 2024, before a further six per cent climb 12 months later.

KPMG Chief Economist Dr Brendan Rynne said despite high interest rates, constrained supply would likely influence property prices short-term and fuel continued price gains in most markets this financial year.

“House and unit prices will then accelerate further in the next financial year as dwelling supply continues to be limited, due to scarcity of available land, falling levels of approvals and slower or more costly construction activity,” he said.

“The supply issue will combine with several other factors to push assets prices up – higher demand due to heavier migration; anticipated rate cuts moving into FY25, and potentially relaxed lending conditions; high rental costs pushing renters to look to buy instead; barriers to developers building new homes; foreign investor demand picking up again; along with longer post-pandemic demand for more space as people continue to work from home.”