Canberra property prices are expected to rise by up to 5 per cent in 2024, falling short of the growth predictions for other capital cities.
Across the capital cities, housing prices are expected to rise 6 per cent in 2024 and 5 per cent in 2025, ANZ Research's latest housing update has revealed.
The bank expects housing prices across the country to have risen 10 per cent by the end of this year.
Canberra's price growth is expected to be more modest.
After a 3.1 per cent fall in 2022, Canberra home prices are forecast to rise just 1 per cent by the end of 2023.
ANZ forecasts Canberra housing prices will rise between 4 and 5 per cent in 2024, followed by another 3 to 4 per cent rise in 2025.
The prediction - which includes all housing types - is slightly more conservative than a recent forecast by KPMG, which tipped Canberra house prices to rise 9.4 per cent and unit prices to rise 2.8 per cent in the year to June 2025.
Looking at the national picture, the housing report states momentum in price growth should continue through 2024 thanks to "relatively quick sales, high auction clearance rates and strong absorption of new listings".
"The strongest performers are likely to be Brisbane and Perth, where population growth is expected to outpace supply more than in other cities," the report stated.
ANZ predicts home prices will rise by up to 10 per cent in Brisbane and up to 8 per cent in Perth over the 2024 calendar year.
Sydney property prices are expected to increase by up to 7 per cent in 2024, while Melbourne prices are expected to rise by up to 4 per cent.
Regional homes no longer an affordable option
While regional Australia was previously considered an affordable option for home buyers, the report found this was no longer the case.
Housing prices in regional Australia have risen 47 per cent since January 2020, compared with a 28.7 per cent average uplift across capital cities.
"This has caused a 'reset' in regional affordability," the report stated.
It now takes about 9.7 years to save for a 20 per cent home deposit in regional Australia, compared with 7.4 per cent in early 2020, ANZ and CoreLogic data found.
Building approvals around decade lows
The ANZ report also predicts weak building approvals will sustain a shortage in housing supply.
"Building approvals are hovering around decade lows," the report stated.
"We expect the sluggish increase in dwellings construction to exacerbate supply shortages and put upward pressure on prices."