Australian house prices will rise by nearly +20% over the next three years, buoyed by the ‘current heat’ in the market surrounding first home buyers, according to research house BIS Shrapnel’s Residential Property Prospects report, based on data from the Real Estate Institute.

The report said average house prices in most capital cities will grow by between 11-19% over the next three years. In real terms (where prices are adjusted for inflation) the level of percentage growth is about half.
According to BIS Shrapnel by 2012, house prices in Sydney will grow by +19%, in Melbourne by nearly +20%, house prices in Brisbane will rise by +16%, in Adelaide they will jump by +19%, in Perth by 12% and residential property prices in Darwin will increase by 11%.