APRA chairman says property prices rising more quickly than incomes could pose a risk to the economy.

The head of the banking regulator has stopped short of saying the housing market is in a bubble, but says it certainly looks risky.

Australian Prudential Regulatory Authority chairman Wayne Byres says with property prices rising much more quickly than incomes and household debt high, the market could pose a risk to the economy.

He has told a federal parliamentary committee today the risk is why the regulators are paying so much attention to property at the moment.

Sydney’s housing market, for example, is soaring and showing no signs of slowing, with its median house price expected to climb well above one million dollars within two years.