• Australian residential property price growth has continued to surpass expectations in recent quarters, suggesting more limited scope for further gains.

• Consequently, NAB Economics has reduced its forecasts for detached house price growth in 2016. Nationally, prices are now forecast to increase 2% in 2016 (from 3%), largely reflecting a slower pace of growth in Sydney and Melbourne.

• While price growth will slow, a sharp correction in prices is still not expected given supportive market fundamentals and continued foreign demand for new dwellings.

• Risks have increased, however, especially in the apartment market which has seen a sharp increase in construction activity.

For further details please refer to the attached document.

Brief Update: House price outlook – 6 November 2015 (PDF, 274KB)