Australia's housing boom has passed its peak, with a looming apartment glut set to trigger a sharp slowdown in future property developments, according to Morgan Stanley.

The slowdown in construction will hurt economic growth, put 200,000 jobs at risk and prompt the RBA to resume cutting interest rates next year, Morgan Stanley analysts led by Daniel Blake said in a research note.

"We believe the growth contribution from the housing boom has already peaked and look for a plateau over 2017 and decline through 2018," the analysts said.

The housing industry is also facing a "more imminent credit crunch" for purchases and developments, they said.