Nobel winner sees Aust housing bubble

A Nobel Prize winning economist has cautioned on rising house prices in Australia, warning particularly on price growth in the nation’s two largest cities.

"You have a pretty good bubble in Sydney and Melbourne," Professor Vernon Smith said, according to The Australian Financial Review. 

"It is hard to believe [recent price growth] is very sustainable."

Professor Smith, who won the Nobel Prize for Economics back in 2002, added tight supply and rising rents suggest a crash was not likely in the near-term.