Australian Property Prices are predicted to rise in 2013, according to new figures.

The Housing Boom and Bus Report from SQM Research says that House Prices could increase in the next 18 months, with Property in capital cities maybe jumping up by over 10 per Cent.

The report follows the latest round of quantitative easing in Australia, which SQM hopes will force the Reserve Bank of Australia into cutting interest rates.

"That would be very positive for the housing market overall," Managing Director Louis Christopher told the Financial Review. "Overall we think the probability of a recovery for most capital cities has increased in recent times. Over the past four weeks we've seen very good auction results. Up until four weeks ago, that trend wasn't evident, it just wasn't there."

According to SQM, a cut of even half a percentage point from 3.5 per cent by June next year could spark a house price increase of between 5 and 9 per cent, following a rise of 3 to 5 per cent in 2012.

Melbourne's forecast is less enthusiastic, suggesting an increase of up to 5 per cent for 2013, but predictions for Perth are extremely positive, postulating a price surge of up to 12 per cent.

 "I think we are almost at that point where house prices in most Capital Cities seem to be finding a floor," added Paul Braddick, head of property research at ANZ.