Australian house prices are tipped to rise by 15% in the next 18 months according to accounting firm KPMG.
It says the rising prices will make housing affordability even tougher for struggling home buyers.
KPMG, chief economist, Dr Brendan Rynne, says a number of factors will push up prices.
“Despite high interest rates, constrained supply will likely dominate the factors influencing property prices in the short term and result in continued price gains in most markets during FY2024,” he says.
“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.”
Rynne says continuing immigration will also put further upward pressure on property prices as a result of growing demand.
He predicts that house prices will rise 4.9% in the next nine months and then 9.4% in 2025.