Analysts at Morgan Stanley released a research report on Wednesday predicting that the highest housing prices in Australia may fall by 15%. Analysts, including Chris Read, wrote in a report to clients: “Our latest analysis shows that the catalytic factors for housing prices to bottom will probably not appear until the second half of next year. Policies are hampered by inflation, housing market activity continues to be under pressure, and the burden of buying a house compared to renting is still at an all-time high.” According to the research report, the current downturn in the housing market is different from the past, and investors should adjust their expectations and positions accordingly. The report also predicts that Australia's unemployment rate will peak at 5.1%; analysts lowered their GDP growth forecast for next year from 1.4% to 1.1%. They said, “Inflation will eventually fall, but there is a time lag; the Reserve Bank of Australia is still likely to raise interest rates in the short term, and it is unlikely that interest rates will be cut before the third quarter of 2027.”

Analysts at Morgan Stanley released a research report on Wednesday predicting that the highest housing prices in Australia may fall by 15%. Analysts, including Chris Read, wrote in a report to clients: “Our latest analysis shows that the catalytic factors for housing prices to bottom will probably not appear until the second half of next year. Policies are hampered by inflation, housing market activity continues to be under pressure, and the burden of buying a house compared to renting is still at an all-time high.” According to the research report, the current downturn in the housing market is different from the past, and investors should adjust their expectations and positions accordingly. The report also predicts that Australia's unemployment rate will peak at 5.1%; analysts lowered their GDP growth forecast for next year from 1.4% to 1.1%. They said, “Inflation will eventually fall, but there is a time lag; the Reserve Bank of Australia is still likely to raise interest rates in the short term, and it is unlikely that interest rates will be cut before the third quarter of 2027.”