With more than 300,000 people expected to migrate to Australia this year, demand is set to continue driving up property prices, according to analyst Michael Matusik.

He says essentially real estate is about supply and demand and population growth is a key driver of demand.

Matusik says Australia’s population growth is breaking recent growth records and that the annual population growth over the next ten years is likely to be higher than the previous decade.

There is also likely to be a rapid increase in the number of children and the size of the upgrader market in the next ten years, according to Matusik.

“If this comes true, a lot more urban infrastructure will be required and the type of housing most needed will change from recent supply trends,” he says.

“Most of the population growth over the next decade is likely to continue to take place in our capital cities, with most of this growth settling in Sydney, Melbourne, Brisbane and Perth.”