Luci Ellis, the head of the financial stability department at the Reserve Bank of Australia, on Tuesday said the rise in housing prices experienced in Australia should be countered by building further dwellings.

At a conference in Sydney, Ellis said: "The nature of the demand shock Australia faces means that it would be helpful if more of that demand could be accommodated with extra homes for occupation, instead of by higher prices", noting that, "some of that pick-up in construction does seem