Alan Kohler says perhaps there's a Sydney housing bubble

There was definitely no risk of a national housing bubble, Alan Kohler, the Australian columnist and publisher of The Constant Investor, has suggested in his latest column.

Is there one in Sydney?

"Perhaps," he wrote in The Australian.

"Sydney just happens to be where people want to live and invest and, at the moment, there’s a lack of supply. 

"Maybe there’ll be a crash if supply catches up and interest rates rise.

"Big ifs," he suggested.

He noted the surge in Sydney’s auction clearance rate over the weekend to 86.4 per cent should lay to rest the myth that the housing market has stopped responding to lower interest rates and, secondly, that government decentralisation policies are worthwhile.

The weekend's preliminary clearance rate in Sydney was 10 percentage points higher than a year ago, and also 10 percentage points higher than the next highest result the 76 percent in Melbourne.