The sharp rise in the construction of new apartments may be the catalyst for a "dramatic and destabilising" end to the current housing boom, the Organisation for Economic Co-operation and Development has warned.

"Domestically, the unwinding of housing market tensions to date may presage dramatic and destabilising developments, rather than herald a soft landing," said the OECD in its latest report.

The Paris-based think tank also says federal election jitters are adding to Australia's economic concerns, and has called for an increase in the goods and services tax.