Westpac Sees Australia Housing Credit Growth Moderating to 4.7% by FY2027
Westpac projects housing credit growth to ease from 6.8% in FY2026 to 4.7% in FY2027, though housing undersupply and population growth may cushion the slowdown.
Westpac has revised its outlook for Australian housing credit, forecasting a moderation in growth from 6.8% in fiscal year 2026 to 4.7% in fiscal year 2027.
The bank noted that structural factors such as chronic housing undersupply and ongoing population growth are expected to partially offset the dampening effects of higher interest rates and recent policy changes on the housing market.
This mixed view suggests that while credit expansion is set to slow, the underlying demand–supply imbalance could limit the downside for prices and lending activity.
Source: First Squawk