The Australian property market may be on the brink of another boom, according to Domain.

Analysts predict an anticipated rate cut early next year could boost borrowing capacity, giving buyers more funds to compete for homes.

Domain’s Chief Economist, Nicola Powell, highlights that house and unit prices in Sydney, Brisbane, Adelaide, and Perth reached new highs in the September quarter. Powell expects that once interest rates start to fall, buyer activity and prices will rise further.

Even in the current high-rate environment, Sydney’s median house price rose by 0.6% to $1.65 million, while units climbed 0.9% in the June quarter.

Brisbane saw house prices increase by 1.5% and units by 3.3%; Adelaide’s houses rose by 4.2% and units by 3%; and Perth’s housing market grew by 3.1% for houses and 0.9% for units.

The total value of the Australian property market recently hit $11 trillion for the first time.

CoreLogic’s Executive Research Director, Tim Lawless, foresees more growth but notes a gradual slowdown and greater market diversity across regions.

Improving market sentiment, a stable job market, and expectations of a rate cut contribute to this optimistic outlook.