House prices will keep rising into next year, says Domain, as immigration boosts demand

Sydney to lead recovery with 6%-9% increase by next June while Melbourne, Adelaide, Perth and Brisbane will surpass or come close to record highs

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The recovery of real estate prices will extend across Australia and well into 2024 as a swelling population overwhelms the headwinds of higher interest rates and reduced borrowing limits for some prospective buyers, according to data group Domain.

Sydney, which led the fall in home prices last year as the Reserve Bank began lifting its cash rate, will also power the rebound. By the end of June next year, the city’s houses are forecast to be 6%-9% higher than at the end of last month, lifting the median price to a record of just over $1.6m.