Sydney to avoid house bubble

House price growth in Sydney is expected to moderate in 2014 with the risk of a bubble forming downplayed by economists and the housing sector, according to The Australian Financial Review.

The chief economist of the Housing Industry Association, Harley Dale, admitted the double-digit price growth of 2013 would be unsustainable, but he expects more “reasonable” growth in 2014.

“We certainly don’t want to be in a situation in January next year where we are again talking about another year of 15 per cent price growth,” he told the AFR.

Mr Dale said it was crucial the 2013 recovery in new dwelling construction continued into 2014 to ensure price growth could be kept at a sustainable level.