Independent industry forecaster Oxford Economics Australia's Residential Property Prospects Report also found that house prices were set to "accelerate" in 2025, with interest rate cuts anticipated this year.
And easing interest rates in 2025 and 2026 are predicted to blunt the impulse for landlords to push large rent increases on tenants. "Adelaide and Brisbane have seen a continuation of late 2023 momentum, while Perth has sprinted ahead. Oxford Economics expected the combined capital city median house price to end 2024 up 4.7 per cent, while units are anticipated to rise 5.1 per cent.By the end of 2024, house rents are expected to increase 6.5 per cent nationally, with units rising 8.1 per cent."From the current extreme low, we expect rental vacancy rates will lift slightly in 2024 but remain very tight by historical standards," Kilroy said.