REAL estate prices are under threat from the high Australian dollar, along with confidence and jobs, but the Organisation for Economic Co-operation and Development says Australia is set to grow at just about the fastest pace in the developed world for decades to come.

The OECD Economic Outlook released overnight in Paris puts Australia near the top for economic growth during 2012, behind South Korea, Mexico and Chile.

Australian house prices are still very high relative to rents and incomes.

While Australia's economy is set to grow at 3.1 per cent this year, close to the budget forecast, the US should grow at 2.4 per cent, Britain 0.5 per cent, and Italy and Greece should slide further into recession.

The report credits the mining boom with keeping Australia ahead of the pack but says consumer caution and the ''persistently high exchange rate'' are holding back other parts of the economy.