Australian Housing Outlook (2011 - 2014)

According to the QBE LMI Australian Housing Outlook for 2011-2014, some metropolitan capital cities will fare better than others in terms of housing price growth. In most cases,it is being driven by state specific economic activity.

Price growth is forecasted to be strongest over the next three years in Perth and Sydney, with both capitals experiencing rises of around 19%–20% in median house prices. Perth’s strength is expected to be driven by investment in mining in Western Australia while Sydney’s is expected to be driven by demand for rental properties.

Brisbane and Darwin are forecast to experience solid median house price growth of 16%-17%, predominantly from booming activity in the mining and resource sectors.
Adelaide, Hobart and Canberra are forecast for a more moderate house price increase between 6% and 8% as they experience an excess of housing stock.

And Melbourne is tipped to experience the weakest houseprice growth, with its median value forecast to rise by less than 6% over the forecast period, as record levels of new dwellings erode the current dwelling deficiency.
 
This is the snapshot of the nation, according to the report which was prepared, researched and written by leading property forecasters, BIS Shrapnel: