The CBRE's first-quarter residential valuation real estate market survey also found that over three-fifths of surveyed appraisers expect prices to rise nationwide, with two-fifths suggesting increases of up to 5%. These figures reflect the optimistic outlook of most appraisers for robust growth prospects in detached houses and apartments over the next 12 months. Additionally, nearly half of the appraisers predict an increase in apartment prices over the next year.

Sameer Chopra, CBRE's Director of Pacific Research, points out that pressure on the rental market and housing affordability are driving price increases. Low vacancy rates are pushing up rental prices, prompting some tenants to consider purchasing apartments, thus enhancing overall housing affordability. Early signs of real estate market value growth have appeared due to expectations of interest rate cuts and buyers willing to purchase before these cuts take effect.

The outlook for buyer demand is also optimistic, with over half of appraisers expecting an increase in buyer demand over the next year, especially in areas like the Australian Capital Territory (ACT), Melbourne, and Sydney. The report shows that buyer demand in the market has been strong to very strong over the past three months, contrasting sharply with reports of weak or very limited demand, with the former outnumbering the latter by six times.

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Demand is particularly strong in cities like Perth, Adelaide, and Brisbane, where these areas benefit from factors such as housing affordability and lifestyle. In contrast, demand in the Australian Capital Territory, Victoria, and Melbourne is relatively weak. CoreLogic data shows that Perth property prices have risen by 5.2%, Adelaide by 3.6%, Brisbane by 2.9%, while the Australian Capital Territory has only seen a slight increase of 0.3%, Victoria has fallen by 0.1%, and Melbourne has fallen by 0.6%.

Although there are affordability issues, high interest rates are not the sole reason. Some buyers in the market are not highly sensitive to high interest rates when purchasing properties and have some flexibility regarding interest rate changes. This also explains why property prices may continue to rise even in a high-interest-rate environment.

The comprehensive survey results show strong demand from first-time buyers and upgraders, while local and interstate investors and downsizers are also among the most active buyer groups in the market. It is worth noting that decreasing demand for unrenovated properties and vacant land may lead to even tighter market supply. Due to rising construction costs, buyers are unwilling to take on construction risks, leading to reduced demand for unrenovated old houses, which may result in longer sales cycles for related properties.