ANZ Bank has released a report predicting house prices in Sydney and Melbourne will soon be growing at double-digit rates.

They are forecasting house prices will be growing at more than 12 per cent per annum by the middle of next year.

Chief Economist at ANZ Richard Yetsenga tells Ross Greenwood the upcoming growth can be attributed to a number of factors.

“[Prices] have started rising already, of course, and if you overlay what’s going on, interest rates have fallen 75 points this year.

“You’ve had some relaxation in credential requirements.

“The election was important to the extent it took away some uncertainty about potential tax changes around the property market.”

Click PLAY below to hear the full interview

Image: Brendon Thorne/Bloomberg via Getty Images