Australia Housing Prices and Private Sector Credit Forecast Update

ANZ has downgraded its Australian housing price outlook, forecasting broad-based declines across capital cities through 2027. The downturn is driven by higher interest rates, geopolitical instability, and fiscal policy changes affecting investor activity.

Key Takeaways

• 1.Capital city housing prices are forecast to fall 2.1% in 2026 and 3.3% in 2027.
• 2.Investor credit growth is expected to decline significantly from a peak of 10.4% in Q2 2026 to -0.8% in Q1 2028 due to housing policy changes.
• 3.The RBA is expected to implement two 25bp rate cuts in late 2027 to support the housing market, leading to a partial price recovery in 2028.

Table of Contents

• Australia's housing prices and private sector credit: forecast update
• Housing
• Private sector credit
• Important Notice

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