Australia’s borders have welcomed a record number of new arrivals over the past year, and we at D’MANSHA are watching closely. As per recent data, 57,270 net permanent/long-term arrivals in January alone – the highest January on record, and nearly half a million migrants (494,540) in the 12 months to January. In simple terms, that’s half a million more people looking for homes. Every extra person drives up demand for buying and renting.
- Competition heats up: With so many new buyers and renters, each home on the market will have more eyes and offers on it than usual. Multiple bids on well-priced properties are now common, even at entry price points. (For example, our research shows listings are about 20% below normal seasonal levels, so agents report bidding wars on many homes.)
- Rental demand and yields rising: The rental market is already feeling the squeeze – long queues at open inspections and faster rent increases are common. For investors, this means higher rental yields, but also fiercer competition for good tenants.
- Supply shortage: higher prices: New research confirms housing supply isn’t keeping up. One report notes that last year’s record net arrivals (480,520) coincided with a 15% drop in new home approvals. In practice, this mismatch pushed national prices up about 7% in 2025. Simply put, more demand plus tight supply keeps upward pressure on prices.
- Hotspots emerging: Not all areas feel it equally. We’ve seen especially strong growth in Western Australia and Queensland (each now ~140,000 above their pre-COVID trend), with South Australia and Tasmania also growing faster than before. These may be opportunities for capital growth and rental demand, but they will attract attention quickly.
For home buyers and investors, the message is clear: act strategically. A booming population means long-term growth, but it also means you’ll face more competition. In our view, timing and location are key. Getting into the market before demand spikes further can lock in value. And choosing the right suburb, one with job growth, infrastructure and proven tenant demand, will pay off. We never buy on impulse; we always put numbers first, analysing yield, cash flow, and capital growth trends, so decisions are data-driven, not emotional.
In this tight market, a buyer’s agent can give you an edge. We track trends daily and alert you to off-market or under-priced deals in high-demand regions. We help you prepare to bid confidently (or negotiate offers) while others panic. The long-term trend is population-driven growth, so any home you buy is likely to be in demand by more people in the future. Our advice? Stay focused on strategy: look for homes that meet your goals and budget, and don’t get swept up in frenzied auctions.
Ready to act? If you’re considering buying soon, we at D’MANSHA can help make sense of this market. Give us a call on 0406 11 22 44 or book a free consultation to discuss your situation. Follow us on LinkedIn and Instagram to find the right property on the best terms.