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1. Photographer: Brendon Thorne/Bloomberg More Dwelling values in Australias largest cityrose at the fastest annual pace in 14-years in February as record-low interest rates outweighed regulatory efforts to avert a housing bubble. Average values in Sydney surged by 18.4 percent, the biggest jump sinceDecember 2002 when the nation was at the tail-end of the early 2000s housing boom, according to data provider CoreLogic Inc. Across the state capitals combined, valuesrose by 11.7 percent. Despitetighter lending restrictions aimed at discouraging speculative buying by landlords, the runaway housing market shows few signs of easing amid strong economic growth , historically low borrowing costs and a tax system that offers perks for property investors. More from Bloomberg.com: In Video, Uber CEO Argues With Driver Over Falling Fares Housing affordability has become a hot-button political issue, with New South Wales premier Gladys Berejiklian promising to make it one of her top priorities. Last month, she appointed former Reserve Bank of Australia governor Glenn Stevens to advise on the options. Central bank Governor Philip Lowe has signaled hed prefer not to ease interest rates as it would further inflate Sydney house prices and drive already record household debt even higher, threatening financial stability. The strong growth conditions across Sydney have provided a substantial wealth boost for home owners,said Tim Lawless, head of research at CoreLogic. However, the flipside is that housing costs are becoming increasingly out of reach. Prices are now almost 8.5 times higher than household incomes in Sydney, according to CoreLogic.