26 Sep 2013

Australia issues fresh property warning

1:11 pm on 26 September 2013

The Australian Reserve Bank has delivered yet another warning about the country's rising property prices.

This time, it has fired a warning shot at self-managed superannuation funds, which it says may be responsible for pushing up house prices.

In its latest half-yearly report on the financial system, the RBA says law changes in recent years have led to more superannuation funds borrowing money to invest in property, tripling their housing purchases in the last five years.

In New South Wales, 40% of housing loan approvals are now for property investors.

The RBA says that speculation may be driving up property prices to unrealistic levels.