BUDGET 2021: House prices forecast to stall

Treasury is forecasting an end to rampant house price inflation.

Thu, 20 May 2021

Treasury expects rampant house price inflation to stop in its tracks due to the government ending mortgage interest deductibility for landlords.Forecasts released in the budget show property price inflation peaking at 17.3% in the year to June 2021, before a dramatic slowdown in house price growth to 0.9% in the next 12 months.From there it is expected to pick to a more leisurely 2% to 2.5% annual growth through to 2025.The Treasury said the change would alter the composition of buyers in the housing market.“Interest deductibility ... is...

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