Recently, the Daily Mail reported that the Australian property market will face a new wave of pressure.

According to SQM Research, the Australian Federal Reserve will raise interest rates three more times, which will lead to a significant drop in house prices in Sydney's postcode districts that are under mortgage pressure.

While house prices in Sydney have soared by 10 per cent over the past year, prices in the outer south-west are falling. House prices in Sydney's far south-west suburbs have been falling in the year to October, according to CoreLogic.

Cecil Hills house prices fell 4.2 per cent to A$1.26 million, further below Greater Sydney's median price level of A$1.397 million.

SQM Research expects Sydney house prices to fall between 2 per cent and 6 per cent by 2024 if the Australian Federal Reserve raises interest rates three more times, taking the current 4.35 per cent rate to 5.1 per cent, a 15-year high. In this worst case scenario, the Israel-Hamas conflict in the Middle East would push inflation closer to 7 per cent again, up from the current 5.4 per cent.

Sydney's far-flung suburbs in particular are expected to be likely to suffer even sharper house price falls. Sydney's Central and Outer Ring detached houses will see even greater price adjustments, with the median price of a detached house in the urban areas more than 40 kilometres from the city above A$1 million.

Even with a 20 per cent down payment (A$200,000), a couple with an A$800,000 mortgage would have to reach an income of at least A$133,000 to avoid falling into mortgage stress. This means that a couple would owe the bank more than six times their income.

The group's director, Louis Christopher, said, "The typical repayment-to-household-income ratio has reached a generational high, making housing unaffordable for most working adults in Sydney."

The sharp fall in house prices will be bad news for recent borrowers, who may owe the bank more than the value of their home, a situation known as negative equity.

Data from credit ratings agency Moody's Investors Service shows that Sydney's south-west accounts for four of the five worst postcode areas in NSW for mortgage arrears, with borrowers 30 days or more behind on their mortgages. These include Cabramatta and Casula, where the median price of a detached home is A$1.055 million and A$1.082 million respectively.

As Australia's net migration levels continue to climb, economists and migration analysts expect the number to exceed 500,000 by the end of 2023 and set a new annual record.

In the year to March, total population growth reached 563,200 thanks to a record 454,400 migrants and 108,800 newborns. However, even if population growth levels slow to 460,000, house prices in Sydney, Melbourne, Hobart and Canberra will fall as a result of a combination of net migration and natural increase.

Perth house prices will remain resilient and are expected to rise between 5 per cent and 9 per cent in 2024, having soared 11.1 per cent in the past year. The median price of a detached home in Perth is A$660,069, the most affordable of any state capital.

House prices in Melbourne are expected to fall between 3 per cent and 7 per cent and currently stand at A$937,736. House prices in Hobart are expected to fall between 5 per cent and 9 per cent, while over the past year they have fallen 5.1 per cent to A$705,919.

Brisbane house prices are expected to rise between one and four per cent, with the city's current median price at A$860,465, up 10.3 per cent since January. The picture is more mixed in Adelaide (median price A$75,357), where house prices are expected to fall 3 per cent to rise 1 per cent. Canberra, with a median price of A$961,329 for a detached home, is expected to see the biggest decline, between 6 per cent and 10 per cent.

It is important to note that these projections are modelled results based on certain assumptions, such as changes in factors such as unemployment and migrant population growth. As a result, the outcome of these projections may be affected by a number of factors, including economic conditions and policy changes.