Owners should feel optimistic about the future of property in Australia according to leading demographer and author Bernard Salt.

He believes the resumption of immigration to pre-pandemic levels will lead to increased demand in the property market over the next five years.

And in good news for investors, he says the tight rental market will become even tighter following an influx of migrants and overseas students, particularly from China.

According to PropTrack data, rental listings fell more than 25% in 2022 while rents rose 10% across capital cities.

SQM Research says asking rents increased in January and are now up 18% year-on-year.

Salt predicts lifestyle markets outside the major cities will continue to benefit as middle-age millennials and retiring baby boomers decided to make a move.

“The average life expectancy is 84, which is almost 20 years in retirement. Our lifecycle has been reinvented to introduce a lifestyle stage,” he says.

Millennials will move further out for larger homes to accommodate growing families.