Annual growth this year will be about 2 per cent but the slowdown is "unlikely to persist", according to its analysis.
"Our forecasts are consistent with our expectations that national housing price growth will continue to slow in 2018, though only moderately and without falling into negative territory," ANZ says in an article published in AFR.com.
A tightening of lending requirements and the looming possibility of interest rate hikes are the two main reasons price growth in cities is expected to slow.
An increase in the number of apartments and fall in Chinese buyers is also helping to slow price growth.
However, banking giant HSBC is expecting prices to this year rise by between 3 and 6 per cent. Investment bank TD Securities is tipping rises of between 4 and 5 per cent while ratings agency Moody's Australia is tipping 4 per cent.
Source: AFR.com
