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A major bank has halved its property price growth forecast for next year and is now bracing for prices to fall in Australia s biggest cities as lending rules are tightened.
As recently as February, Westpac predicted prices in Australian capital cities would surge by 10 per cent in 2021 followed by a 10 per cent increase next year.
But on Tuesday, Australia s second biggest bank revised its forecast to have prices grow 15 per cent this year, before slowing to just 5 per cent in 2022 as the banking regulator tightened rules on investor loans.
Sydney, Melbourne, and Hobart were expected to grow at a 5 per cent pace next year, before prices in 2023 fell by 1 per cent in both the NSW and Victorian capitals. ....

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