Housing boom expectations hit 15-year high
Despite an overall gloomy outlook in two new surveys, Australians are hopeful of a property price boost over the next 12 months.
AUSTRALIANS are confident of a property boom with expectations about price growth hitting a 15-year high, a new report says.
While the influential Westpac-Melbourne Institute consumer sentiment index fell to 92.1 in October – where 100 is a neutral score – the report shows householders are confident prices are heading in the other direction.
“The bullish consensus on house price expectations has continued to strengthen,” said Westpac’s Matthew Hassan.
“The Westpac–Melbourne Institute Index of House Price Expectations rose another 2.1 per cent in October, hitting a fresh fifteen-year high of 171.9.
“Just over three-quarters of consumers expect prices to rise over the next 12 months.”
Expectations are strongest in Queensland (184) but lagging a touch in Victoria (165) and Western Australia (166).
Despite the optimism, overall consumer confidence is falling as hopes for further cuts in mortgage interest rates fade, according to the Westpac report and a survey by ANZ and Indeed..
The Westpac-Melbourne Institute consumer sentiment index fell 3.5 per from September to October. The new ANZ-Indeed Australian Job Ads report shows ads for vacancies fell 3.3 per cent month-on-month in September 2025.
According to the Westpac-Melbourne report, overall confidence is at a six-month low, giving back strong gains seen between May and August.
Hassan, Westpac’s Head of Australian Macro-Forecasting, said: “Consumer confidence has fallen 6.5 per cent over the last two months, giving back gains seen between May and August when rate cuts were giving a clear boost.
“At 92.1, the October Index read is now at firmly pessimistic levels, albeit still well above the very weak reads seen during the extended ‘cost-of-living’ crisis.
“Consumers appear to have been rattled by recent updates on inflation.
The news, and signs of firmer consumer demand and a pick-up in housing markets, looks to have sparked renewed doubts about the path of interest rates, weighing on near-term expectations for family finances and the economy.
Household spending had recovered strongly in 2025, with the Australian Bureau of Statistics reporting consumption firmed five per cent in the 12 months to August.
But consumer spending has not kept pace with growth in consumer sentiment, according to ANZ economist Aaron Luk.
“And what that tells us is that there is actually definitely more room for consumption to pick up, just given off where sentiment is at the moment,” he said.
Along with consumer spending, the RBA has also revealed it is keeping a close eye on the jobs market.
Labour indicators show businesses are finding it less difficult to find workers than two or three years ago.
The new ANZ-Indeed Australian Job Ads report shows job ads fell 3.3 per cent month-on-month in September 2025.
That’s much steeper drop than the previous month.
It was the third consecutive monthly decrease in job ads after holding broadly steady for over a year, marking the sharpest fall since February 2024 and adding to concerns about the labor market outlook.
