by Sanjeev Sah | July 11, 2023 | Market Updates

Australia’s property prices will continue to rise throughout the coming financial year in a “well-established” and “steady” recovery, according to a new Domain forecast. 

This recovery could see house prices in Sydney, Adelaide and Perth hit new record highs, with unit prices in Brisbane, Adelaide and Hobart also smashing records. 

The prediction comes even though the Reserve Bank of Australia has raised interest rates 12 times since May 2022, with potentially more hikes on the horizon. 

However, Domain chief of research and economics Dr Nicola Powell said high net migration would drive the property market’s recovery, despite the tight lending environment (see chart).   

“Australia has seen an exponential increase in temporary and permanent migration since the international border reopened in late 2021 to alleviate skills shortages,” she said.  

“Of course, unlike natural population growth, those arriving from overseas aren’t already housed. This puts us in a position where in the next financial year alone, nearly 130,000 extra dwellings will be needed.”