Sydney property price rise ‘crazy’, says RBA Governor

The debate over Sydney’s property market continues as RBA Governor Gelnn Stevens noted that the rising property prices were “acutely concerning.”

Mr Stevens was speaking at a business lunch in Brisbane on Wednesday when he acknowledged that the issue is a social problem. However, the Reserve Bank remains open to slashing the cash rate in the future to help boost the economy.

"What is happening in housing in Sydney I find acutely concerning for a host of reasons, many of which are not to do with monetary policy," he said.

"I think some of what's happening is crazy, but we have a national focus and so that just increases the complexity."

His comment came soon after Australian Treasurer Joe Hockey suggested that buying property in Sydney wasn’t unaffordable and what one needed was "a good job that pays good money" to buy a home in Sydney.

Other people to express their concern over the property price boom were Treasury boss, John Fraser, who said Sydney and wealthier parts of Melbourne were ‘unequivocally’ in a housing bubble, and ANZ chief Mike Smith, who suggested that while property prices in the city were not quite a bubble yet, they needed close attention.