New forecasts suggest that the rate of price growth in Sydney is about to slow, but the pace in Brisbane is expected to increase. NAB Group Economics has forecast the following house price increases: Sydney 10% in 2015 and 5% in 2016; Melbourne 6.2% in 2015 and 3.5% in 2016; Brisbane 3% in 2015 and 5% in 2016.

Perth house prices are expected to decline 2.5% in 2015 and are then expected to remain flat in 2016. Across Australia, house price growth is expected to average 6.4% in 2015 and 3.8% in 2016. NAB said the slowdown would be caused by “rising unemployment, sluggish household income growth, affordability concerns (especially in Sydney and Melbourne) cost of living pressures and still-high levels of household debt”.