Page 4 - Wealth Adviser Newsletter March 2025

ISSUE 107
MARCH 2025

last year, we expect average property prices to rise around What to watch?
3% this year with the upswing becoming more noticeable in The key things to watch will be interest rates, unemploy-
the second half. ment and population growth. For example, a return to RBA
Auction clearance rates are up from their lows late last rate hikes or less cuts than we are forecasting, a sharply
year but are running around average levels or a bit below rising trend in unemployment and a sharp slowing in net
consistent with a gradual recovery in the property market. migration could result in a resumption of property price falls
reflecting the divergence between home buyers’ capacity to
pay and current home price levels. On the flipside a faster
fall in rates on the back of weaker than expected inflation
could drive a stronger upswing in property prices. And of
course, Australian home prices have had a tendency to sur-
prise economists (like me) and many others on the upside
over the last few decades.

AMP Limited provides banking, super, retirement and advice services in Australia and
New Zealand, supporting over one million customers and employing approximately
3,000 people.
Source: Domain, AMP

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