PHOTO: New housing in Wadalba, New South Wales. Image: AAP/Troy Snook.

AUSTRALIA’S property market upswing is expected to “peter out” in 2018 given the outlook for interest rates, cooling house prices and tighter lending restrictions, according to consulting firm Deloitte.

The Deloitte Real Estate Outlook 2018 launched today paints a generally positive picture for the real estate sector this year, but one not without risk.

The report noted the current residential property upswing had seen strong price inflation of around 47 per cent across the capital cities since December 2012, driven largely by Sydney and Melbourne.