Australia’s housing market has started to move from one speed – flat out – to a two-speed market, according to CoreLogic head of research Tim Lawless.

Lawless says house price growth in Sydney and Melbourne has flattened in recent months, although other capital cities and major regions are still showing very strong results.

Property prices are still rising at boom levels in smaller capital cities such as Brisbane and Adelaide with prices increasing about 20% a year.

Perth price growth is also starting to pick up speed, which Lawless says is partially as a result of Western Australia reopening its border in recent months.

Regional markets are also performing well as population growth results in high demand and low supply.

Lawless says some markets will feel the affects of a variety of factors including worsening affordability, rising costs of living and more stock coming onto the market.

But he says open borders and the gradual return of overseas migration is another positive factor which will lift housing demand.