Australia's property market is likely to see "further price growth and more buyer activity" in the second half of the year as inflation continues to fall and the Reserve Bank delivers more rate cuts, a National Australia Bank (NAB) executive said in an April 17 note.
The bank's data showed an increase in lending activity in the past two months as home buyers returned to take advantage of lower interest rates.
"Of course, this isn't a boom, but the tone has changed. Sellers are adjusting their expectations, buyer confidence is up, and the market is functioning with a level of stability we haven't seen in some time," said Denton Pugh, NAB executive for home lending.
With more rate cuts on the horizon, the property market is expected to see stronger competition in the second half, especially in supply-constrained capital cities, said Pugh.
The executive expects market stability in the Australian autumn period, with "moderate price growth, steady demand, and improving sentiment." Pugh added that buyers and sellers will continue to keep an eye on domestic uncertainties related to the federal election and global tensions due to US tariffs and their economic impact.
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