Australian property sentiment has surged to its highest level in 15 years, confirming that optimism about future price growth remains firmly entrenched and rising.
According to Westpac’s latest Consumer Sentiment Index, expectations for house prices climbed another 12.2% over the past year and now sit 34% above the long-run average.
The October reading of 172, well above the long-term average of 129, highlights just how strong confidence has become.
It’s even higher than during the 2021 pandemic boom, when prices jumped 16% in a single year.
The big question now: what happens next?
We think significant price growth well into 2026, as we predicted at the start of 2025.
Source: Westpac/Melbourne Institute, AMP
What’s Driving the Confidence
- Lower interest rates and expectations of further RBA cuts
- Chronic undersupply of housing across most capital cities
- First home buyer incentives and government support measures
While a November rate cut isn’t guaranteed, Westpac notes that delaying further easing could mean the RBA has to cut more aggressively later, adding more fuel to price growth expectations.
What It Means for Homebuyers and Investors
Sentiment is already running hot.
Cotality reports that property values across the combined capitals have risen 4.5% in just seven months since the first rate cut in February and the pace of growth is accelerating each month, confirming that momentum is well underway.
That’s the equivalent of almost 10% annual growth if the current trend continues.
For buyers and investors, this may be the last window before the next growth cycle accelerates.
The spring market provides a prime opportunity to act while stock levels are higher and vendors have greater competition.
If you’re planning to purchase, refinance, or restructure your portfolio, now is the time to revisit your strategy and position yourself for the cycle ahead.
Reach Out to Us
If you would like to discuss your next steps, property plans, and mortgage strategy, get in touch with us today. Our team of experts is here to guide you through the complexities of the market and help you achieve your property goals.
