House price growth is predicted to hit new heights as Australia opens its borders to international travel again in the coming weeks.
The latest RBA Cash Rate Survey of experts and economists reveals 60% believe it will contribute to further price increases.
Finder head of consumer research Graham Cooke says while the Australian house price surge of the past 18 months has been driven by home-buyers and local investors, once borders open it is expected overseas investors will return and create more competition in markets.
“The opening of international borders may well fuel the market even further,” Cooke says.
Those surveyed predict houses will continue to record higher price growth than apartments in all capital cities.
The predicted price increases mean Sydney homeowners will potential “earn” 3.5 times the average household salary from capital growth, while average Melbourne owners would make 1.6 times the average salary on their homes.