In the face of a warning from Treasury that capital cities are facing a housing bubble, the prime minister has told parliament that he is happy that house prices are rising.
"As someone who, along with the bank, owns a house in Sydney, I do hope our housing prices are increasing. I want housing to be affordable but nevertheless, I also want house prices to be modestly increasing," the prime minister said during Question Time.
His comments come just hours after the head of Treasury told Senate Estimates that he was concerned that young people in Sydney and Melbourne were being priced out of the property market due to low interest rates and rising house prices.
The prime minister's remarks were slammed by Labor and the Greens, labelling him "clueless and "out of touch".
Tony Abbott co-owns his family home in Forestville, on Sydney's northern beaches.