Australian Property Monitors economist Andrew Wilson has warned house price growth in Melbourne and Sydney is likely to slow to half the pace of last year, The Australian Financial Review reports.
According to the newspaper, the property researcher says house prices in Sydney have become “unsustainable” following an increase of almost six per cent in the last quarter of the year.
Meanwhile, Melbourne's median increased 3.2 per cent during the quarter and 8.6 per cent over the year, to hit a new record of $568,824.
"Prices just can’t keep growing at that level into the medium term," Dr Wilson told the AFR.
“The Sydney market will likely recover around half the price growth of 2013. Melbourne will be lucky to get half the growth it had this year, and most of that will occur over the first half of the year."