Australian house prices forecast to keep falling for a year

Summarised from 2 outlets · Updated 13 Oct, 18:02 · Archive

Australian house prices are expected to decline between 8 and 11 per cent from their March peak before recovery begins in September 2027.

Property prices across Australia are forecast to keep declining for about a year, with prices expected to fall between 8 and 11 per cent from their March peak. Recovery is tipped to begin in September 2027, according to a survey of 384 real estate experts cited by property data firm Cotality. Prices have already fallen 5.2 per cent since March, meaning the market is only halfway through the downturn. For Sydney and Melbourne, an 11 per cent decline would bring property prices down to levels not seen since as early as February 2021.

Australia scored 4.3 out of 10 on the Australian Property Institute's index of property market strength in the three months to September 30, placing it on the weak side. Victoria, New South Wales and Queensland scored poorest, with Victoria registering just 3.7.

Sherman Chan, the institute's research head, told AAP that confidence is currently holding back market activity. 'People are worried about more interest rate hikes on the horizon, and they are after greater clarity,' he said. Higher interest rates were identified as the property sector's primary concern, followed by inflation and potential rollback of tax concessions for property investors. The Reserve Bank raised the cash rate to a 15-year high of 4.6 per cent on 29 September, with governor Michele Bullock signalling further rises were possible before the year's end.

How it is being reported

• Warning house prices will keep sliding for another yearThe property market will likely keep slumping for almost a year but there could be a dim light at the end of the tunnel.The West Australian · 13 Oct, 17:35
• Warning house prices will keep sliding for another yearThe property market will likely keep slumping for almost a year but there could be a dim light at the end of the tunnel.Perth Now · 13 Oct, 17:35

In this story: Australia · Sydney · Melbourne · Victoria · New South Wales · Queensland · Australian Property Institute · Reserve Bank

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