Australian property prices forecast to fall up to 11 per cent

A survey of 384 real estate experts indicates that Australian property prices are projected to fall between 8 and 11 per cent from their March peak, with a recovery not expected until September 2027. Data from property firm Cotality shows dwelling prices have already lost 5.2 per cent of their value since March. In major cities like Sydney and Melbourne, an 11 per cent decline could return prices to levels seen in early 2021.

The Australian Property Institute’s index of property market strength scored the national market 4.3 out of 10 for the three months ending September 30, with Victoria, New South Wales, and Queensland performing poorly. Research head Sherman Chan noted that market activity is being hindered by low confidence and fears regarding potential interest rate hikes.

While median national rents have reached approximately $700 per week, Housing Minister Clare O’Neil has cautioned against implementing rental caps. She argued that such caps could reduce rental stock by causing landlords to withdraw homes from the market, stating that the solution must be “the hard way,” which involves increasing the supply of new homes.