One of Australia’s big four banks has warned Western Australians are in for a shock this year, with Perth property prices forecast to plunge.
National Australia Bank’s latest Residential Property Survey forecasts dwelling prices will fall by 13.1 per cent, followed by a 1.2 per cent increase in 2024.
The forecast bucks expectations from locals, who have the highest housing confidence in the country, and also WA property professionals, who expect prices to rise 1.2 per cent this year and 2 per cent over the next two years.
But NAB’s property predictions have previously proven to be wide off the mark. In 2020 it said Perth prices would fall 7.5 per cent, and the values would drop 4.6 per cent in 2021.
In reality, prices jumped 7.3 per cent in in 2020 and 13.1 per cent in 2021, according to RP Data.
NAB’s predictions have been closer to the mark for east coast cities.
Its most recent NAB survey forecast the national capital city average would drop by 11 per cent this year, followed by a 2.6 per cent increase in 2024.
The report said there is no relief in the rental market in sight. Property professionals surveyed expected WA would have the highest rental growth of all States, with a 4.1 per cent increase, followed by a 4.3 per cent increase in two years time.
The expectation for the national average is 3.1 per cent in one year and 3.3 per cent in two years.
The Real Estate Institute of WA forecast Perth property prices will grow moderately in 2023.
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