Housing prices in the country are expected to decline because of rising interest rates and restricted access to credit says a survey conducted by the National Australia Bank.

The NAB survey reflects previous sentiment made by other banks that housing prices may have reached its ceiling. “Conditions in the Australian residential property sector over the next 12 months are expected to weaken considerably,” the NAB report said. It cited credit conditions and interest rates as “the main impediments to new residential developments and existing property sales.”

The survey compiled answers of 237 property executives and found that housing prices are forecast to slow by 0.5 percent in the coming year with the highest drop in prices to happen in Brisbane, Melbourne and Perth. Brisbane prices were hit by the damages incurred during the aftermath of the floods.

“There has…been a significant downward revision in house price expectations over the next 12 months,” National Australia Bank chief economist Alan Oster said in a statement. “The house price expectations of our survey respondents have been downgraded significantly from our previous survey.”

The NAB survey also reflects previous sentiment made by other banks that housing prices may have reached its ceiling. Ｔｈe highest price growth areas will be found in Sydney, Canberra and Adelaide with a 1 percent increase.

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