[NEW VIDEO]: Melbourne Suburbs Set To Soar By 18.4 Per Cent In 2025 Revealed!

Dear Fellow Property Investor,

RE: List of suburbs shows where house prices are set to SOAR in Sydney and Melbourne when Commonwealth Bank, Westpac prediction occurs

House prices will surge by close to 20 per cent in inner-city Sydney and Melbourne if the Reserve Bank slashes interest rates four times this year, as the major banks are forecasting.

The Commonwealth Bank and Westpac both predict the RBA will trim rates significantly in 2025 - a forecast that real estate data group CoreLogic expects will spark a boom in property prices in a cluster of suburbs in Australia's biggest cities.

Lower interest rates mean banks can lend more to customers as monthly mortgage repayments become more manageable.

CoreLogic's head of research in Australia Eliza Owen and her colleague Robin Han, a senior quantitative analyst, said generous rate cuts will boost markets in inner-city Sydney and Melbourne more than anywhere else in Australia.

'Relatively expensive markets have historically shown stronger responses to reduced cash rate settings,' they said.'

A reduction in the cash rate could spur a recovery trend in the high end of the Sydney and Melbourne housing market, which tend to be the bellwether for broader market recoveries in those cities.

'Lower interest rates are set to boost the housing market in 2025. Lower rates mean buyers can borrow more, spend more, and ultimately make housing a more attractive investment.

'A cluster of suburbs in Sydney's inner west, stretching from Leichhardt to Balmain on the harbour, could see the biggest increase of 19.1 per cent from the current $2.329million. House prices in this gentrified pocket of the city have fallen by 6.9 per cent since peaking last year.

In Sydney's south, the Sutherland Shire is expected to see a 19 per cent bounce from $1.544million.

The Warringah area on Sydney's Northern Beaches, stretching from Curl Curl past Terrey Hills, is forecast to see prices soar by 18.1 per cent from $2.413million.

The Hurstville area in Sydney's south is tipped to see house prices climb by 17.7 per cent from $1.763million. Meanwhile, Hornsby prices could rise by 17.5 per cent from $1.675million as house prices in the eastern suburbs, including Bondi, may increase by 17.2 per cent from $2.975million.

Melbourne is tipped to also see big house price increases in suburbs close to the city if interest rates are cut multiple times.

The Whitehorse area in the city's east, covering Box Hill and Burwood East, is expected to see an 18.4 per cent increase from $1.431million.

Essendon, in Melbourne's inner north, is tipped to see an 18 per cent increase from $1.449million, in an area where median house prices are now 14.8 per cent weaker than the 2022 peak.

The Manningham area, in Melbourne's east covering Doncaster, could see prices go up by 17.4 per cent from $1.439million.

But Brisbane, Perth and Adelaide, which have had double-digit price increases during the past year, are only expected to experience modest price growth in 2025 even if interest rates are cut.

Sunnybank in Brisbane's south is only expected to see a 5.2 per cent increase from $1.1million.

A similar 5.1 per cent increase is forecast for Port Adelaide from $845,446.

But in Perth, the Bayswater-Bassendean area in the city's inner north-east, is only tipped to a a 3.1 per cent increase from $893,976 after house prices in the West Australian capital soared by 16.7 per cent during the past year.

The Commonwealth Bank and Westpac are expecting the Reserve Bank to cut the cash rate to 3.35 per cent by the end of 2025, falling to a level last seen in March 2023.

This easing from the existing level of 4.35 per cent would only partially undo the RBA's 13 increases in 2022 and 2023.