Australia’s property market remains red-hot, with national home prices rising another 0.4% in June, according to PropTrack data. While many see this as a promising sign of ongoing growth, experts are warning the current boom may be on shaky ground.

Real estate licensee Damian Kaltoum attributes the continued price surge to a combination of key factors:

• Lower interest rates

• Slower construction activity

• Ongoing housing shortages

“These conditions are creating a high-demand, low-supply environment,” Kaltoum explained. “Even though purchasing power has weakened, many buyers are still entering the market thanks to easier lending and limited stock.”

However, Kaltoum cautions that this growth is fragile. “If construction ramps up or interest rates shift again, we could see the market cool.”

A Divided Opportunity

Kaltoum advises that buyers with steady income and access to government support may find this a good time to buy, particularly with current lending conditions. Others, however, may be better off holding back and strengthening their financial position before committing.

“Plan well, don’t rush, and make full use of support schemes,” he said.

Regional Markets Narrowing the Gap

While regional areas still offer more affordable options, the price gap with major cities—like Sydney—is steadily closing, driven by migration trends and investment interest.

Importantly, a drop in property listings doesn’t reflect a lack of demand. Instead, it’s a sign that buyers are competing for fewer available homes.

What’s Next?

With the federal government’s ambitious plan to build 1.2 million new homes in the coming years, some market relief may be on the horizon. But until then, prices are expected to stay under pressure.

So the question remains: Is this growth here to stay, or are we heading toward another housing bubble?

Only time will tell.