Aust housing market strong this year

Photo / Bloomberg.

Australia experienced one of the strongest housing markets in the world this year, research shows.

But likely interest rate hikes will slow the market next year, the Global Real Estate Trends report predicts.

The report, released by Canada's Scotiabank, tracked the housing markets in 12 economies.

Home prices increased in Australia, Canada, France, Sweden, Switzerland and Britain.

They remained flat in Germany and the United States, and fell in Ireland, Italy, Japan and Spain.

Australia led the pack, thanks to relatively low unemployment and tight housing supply.

Economist Adrienne Warren expects the Reserve Bank of Australia will lift interest rates by 75 basis points next year.

"Higher interest rates will worsen already strained affordability," Ms Warren said.

- AAP