Rising property prices in Australia, deemed one of the most expensive property markets in the world, have reignited worries over a bubble, but local residents and strategists remain unconvinced.
Prices in Australia have more than tripled since 1997, as low interest rates, high incomes and growing Asian demand worked to propel prices higher. There was a brief period of respite between 2011 and mid-2013 when prices fell 4 percent, but in recent times they have picked up again, rising at their fastest pace in three years in 2013 at near 10 percent.
This week Sydney and Melbourne were branded the fourth and fifth most unaffordable cities to buy a house out of 360 metropolises profiled in the Demographia International Housing Affordability survey published.
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