Sydney housing gamble alarms central bank

[SYDNEY] A 16 per cent jump in Sydney home prices in the past year is sparking alarm at Australia's central bank.

Buyers shouldn't be overly bullish in property purchases, Reserve Bank of Australia assistant governor Christopher Kent said at a Bloomberg Summit in Sydney on Tuesday.

An investor-led surge in prices may amplify any subsequent fall and risk a drop in consumer spending, hurting the economy, the bank said in minutes from its Sept 2 board meeting.