Further interest rate cuts risk making property even less affordable in Australia's two biggest cities, according to a range of experts, and would intensify dangerous imbalances already building in the economy.

Although stopping short of calling it a housing bubble, they say double-digit price growth in Sydney is unsustainable, is widening the gap between rich and poor and has no tangible flow-on benefits to other parts of the economy. Melbourne also has a frothy market, they say.

Getting worse: Australia's housing affordability has worsened, OECD figures show. Credit:Melanie Dove

"Neither economic nor social good would be done by a further surge in house prices from present levels," said Bank of America Merrill Lynch Australian economist Saul Eslake.

"It might make people feel better, but since people are no longer willing to borrow against gains in the value of their properties in order to spend more widely, there is no economic benefit, there's no wealth effect. There is also social harm done by locking an increasing proportion of younger generations out of home ownership and widening the wealth gap between those who own a property and those who don't," he said.