Australian property market may soon cool as rate hikes shrink borrowing capacity

Falling affordability in most parts of Australia and a reduced ability to finance bigger purchases will make significant price rises in 2024 unlikely. Photograph: Brendon Thorne/Getty Images

Australia’s surging property market may be set to cool as affordability pressures mount, borrowing costs rise and more stock enters the market, analysts say.

National home prices were at or near record levels at the end of October, while CBA analysis shows mortgage repayments as a share of income were currently the least affordable on record in all cities save for Brisbane and Perth.