House prices are surging thanks to low interest rates and investor-led demand. Offshore buyers, mainly from China, are also becoming a driving force in the property market in Australia.
There's plenty of interest in off-the-plan residential developments. In Sydney, overseas and local Asian buyers are snapping up new CBD and waterfront apartments.
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McGrath Estate Agents has set up a China desk to handle Chinese clients.
"I think actually that this is the tip of the iceberg," says McGrath chief executive, John McGrath, who's been in the real estate business for decades.
He says the demand from overseas, especially from Chinese buyers, is unprecedented.
"They come here and they pay what they have to, to secure the best assets they can...and that's one of the contributing factors that's pushing up the market as we speak."
Ian Bennett from residential and commerical property firm, Colliers International, also thinks the level of demand from Chinese investors is just the tip of the iceberg.
"I'd say it's really taken off in the last year and especially in the last six months."
Parts of the Melbourne market are booming too, thanks to demand from Chinese investors.
Andrew Wilson from Australian Property Monitors says there's a lot of activity from both Chinese developers and investors in Melbourne's CBD apartments.
So what are the drivers for this growing Chinese appetite for Australian property?
Restrictions on property purchases in China, new laws encouraging off-shore investment and a new band of wealth in China are partly behind it. There is an estimated 10 million millionaires in China.
China's appreciating currency is also a factor.
As for Australia's appeal, Chinese investors are looking for safe assets, a home for children studying here or even a future Australian address for themselves.
China's now the third biggest foreign investor in Australia, according to figures from the Foreign Investment Review Board. The statistics show that Chinese property investment during 2011-12 was worth $4.2 billion.
The National Australia Bank estimates that foreign buyers account for around 13 percent of all new residential property purchases in Australia.
Off shore buyers can only purchase new dwellings and experts say there's no need for concern about the level of Chinese investment.
But Robert Mellor, from property forecaster BIS Shrapnel, has concerns about the over-supplied Melbourne market.
"The biggest danger is where those overseas investors come in and don't look at the fundamentals," he says.
"There's an excess supply developing and there won't be enough people to occupy those dwellings,"
But in Sydney, supply can't keep up with demand, and there is talk of a housing boom and even a bubble.
The Reserve Bank is playing down those concerns, while still warning borrowers not to get carried away.
