RBA fears on housing

THE Reserve Bank is losing confidence that Australia’s hot property market is cooling fast enough, particularly in Melbourne and Sydney, an economist says.

Minutes from the central bank’s August meeting reveal the board remains concerned about house price growth and the level of housing debt.

The minutes released yesterday note that while there are some signs conditions in the Melbourne and Sydney property markets have cooled, growth in these two cities remain strong, while prices in Perth have fallen and apartment price growth in Brisbane has been weak.

The RBA board said there was a need to balance the risks associated with high household debt in a low-inflation environment.