Labor "wants your house to be worth less" the Prime Minister Tony Abbott has told the Parliament after he was asked to respond to Treasury concerns about a developing housing bubble in Sydney and parts of Melbourne.

And Treasurer Joe Hockey has backed earlier statements by Mr Abbott welcoming increasing housing prices in major Australian cities.

The opposition repeatedly called on the Prime Minister in question time on Tuesday to respond to warnings from Treasury Secretary John Fraser about "unequivocal" signs of a housing bubble in Sydney and Melbourne.

On Monday, Mr Abbott when asked about the warning during question time, said as a Sydney homeowner he hopes "our housing prices are increasing".