An imbalance between supply and demand is set to spur property price growth of up to 20% in the next few years, according to new research. Insurance group QBE’s Australian Housing Outlook 2019-2022 report forecasts house price growth in all major cities.

According to QBE, Brisbane is set to experience the sharpest rise in house prices (20%) over the three years to 2022, followed by Adelaide (13%), Darwin (7%), Canberra (6.5%), Perth (6%), Sydney (6%), Melbourne (5%) and Hobart (4%).

Unit values are projected to rise sharpest in Darwin (9%), followed by Canberra (7%), Perth (5%), Adelaide (5%), Melbourne (4%), Brisbane (3%) and Hobart (3%).

QBE Lenders’ Mortgage Insurance CEO Phil White says the growth will come in response to a supply and demand imbalance. Building approvals fell 19% in 2018-19 and completions are forecast to fall further by 2020-21 – down 22% on the five-year average.
“That’s well below underlying demand,” he says.