The debate about housing affordability stepped up a notch on Thursday when CoreLogic revealed that its latest data shows Sydney property prices are on track to achieve growth of 19 per cent in the year to March.

The preliminary results for the first 28 days of March indicate that capital city dwelling prices are likely to rise by approximately 1.4% over the month.

The preliminary data shows that annual growth in Melbourne property prices is on track to reach 16% per annum.

Both Sydney and Melbourne's anticipated rates of growth are higher than the previous cyclical peaks in the current growth phase, and mark a strong rebound in housing markets in the half of 2016 and into 2017.  

Cameron Kusher, head of research at CoreLogic, attributes the phenomenal rates of growth to "low stock levels, high auction clearance rates, and strong investment demand".

But Kusher expects the strong rates of capital growth won’t be sustained for much longer as higher mortgage rates and speculation of a regulatory response to slow investment activity dampen demand. 

See also:

Property prices at cyclical high: CoreLogic

Top end of market faring well, but change is in the air

Spread between investors and first-home buyers at historic high