Property values in two Australian capitals tipped to rise by $50,000 this year
Homeowners in Perth and Brisbane are set for a major boost, with the value of their property tipped to increase in value by an average of $50,000 in defiance of the latest interest rate hikes.
New analysis from Canstar, based on Cotality house prices and forecasts from ANZ, show property prices will rise most rapidly in Perth with a jump of 12.3 per cent.
Such an increase would result in the median house price in the capital rising by $51,569 to hit $1.1 million.
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Homeowners in Perth are expected to be the biggest winners of the Australian property market. Getty
The bank's forecast suggests property prices in Brisbane will rise 9.7 per cent, equating to a $54,919 jump in the median house price to $1.26 million.
By contrast, property prices are sliding in Australia's two largest cities under mounting pressure from consecutive interest rate hikes and cost of living pressures stretching borrowers' capacity.
Melbourne house prices are predicted to fall by 1.7 per cent, while Sydney's are expected to slide by 0.9 per cent.
"It's a tale of two property markets across Australia in a tug-of-war between how much the bank will lend, versus how desperately people need houses," Canstar.com.au data insights director Sally Tindall said.
Brisbane homeowners will see their property values rise, but it's a bleak outlook for locals hoping to get into the market. Getty
"The rate hikes have pushed Sydney house prices to their limit, at least for now, which, at a median price of $1.6 million is far from surprising."
Consumer confidence has taken a nosedive since the latest eruption of war in the Middle East almost two months ago, with Westpac predicting a further three rate hikes this year.
This would result in the borrowing capacity of a single person earning an average full-time wage falling by $58,700 this year.
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