In one of the strongest comments yet from an RBA official on the question of rising property prices, Dr Lowe said on Wednesday that it was arguable that the "main impact" of the pace of the property price increases was a change in the distribution of wealth in Australia, rather than an increase in national wealth.

Young home buyers are thinking outside the box to save for a home deposit. Credit:Chris Hopkins

He admitted that, despite experiencing capital gains on their properties, many Australians may be feeling worse off at the moment because they would be worried about future housing costs for their children.

"Many parents around the country look at the high housing prices and worry that their children will not be able to afford the type of property that they themselves have been able to live in, even if their children were to have the same life-time income profile as they have had," Dr Lowe said in Perth.

"How the intergenerational distribution ultimately plays out will depend critically upon the extent to which the gains that have accrued to the current generation are passed on to the next generation."