by Sanjeev Sah | Aug 22, 2023 | Market Updates

Australia’s property markets are on track “for sustained, but constrained” price rises, according to Westpac’s latest forecast – with the major bank now expecting national home prices to grow 7.0% this year and 4.0% in 2024.  

Forecasts for Sydney, Melbourne, Brisbane and Perth are in the table below.  

Westpac said the upgrade follows continued momentum in Australia’s property markets, and the improved near-term outlook for rates and growth.  

That’s after the bank said it thinks interest rates have now peaked, with cuts expected to begin in the September quarter 2024. 

Price growth is expected to slow as affordability constraints emerge.  

However, Westpac senior economist Matthew Hassan said the extent to which investor activity would start to drive the housing markets was a big uncertainty.  

“Attitudes will undoubtedly shift as the as the interest rate environment becomes less threatening and rental returns and dwelling prices continue to rise. Investor activity will remain an area to watch closely as the upturn unfolds.”