Shane Oliver, chief economist at financial services company AMP, expects average house prices to rise by around 3% in 2025, following a 4.9% rise in Australian house prices in 2024.
However, he said the year's performance would be split in two, with weak conditions in the first few months due to high interest rates and rising unemployment, followed by a better second half as lower interest rates eventually provide a boost. Oliver believes the RBA will start cutting interest rates by May, with three cuts of 25 basis points expected this year. (Jinshi)