Sydney and Melbourne house prices tipped to fall in 2025

But SQM research report warns that prices in other Australian capitals are likely to surge, depending on interest rates and population growth rates

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Sydney and Melbourne property prices are forecast to drop by as much as 5% next year as high borrowing costs keep a lid on home values, according to a new report by SQM Research.

Meanwhile, housing shortages will push up Perth prices by up to 19%, while Brisbane properties will increase in value by up to 14%, and Adelaide by as much as 13%, according to the analysis.