I had that discussion with a few Aussies (in different regions of the
country) in 2000 - and again in 2001. Things have gone up a little since
then (and, do I remember correctly, the first time buyer's rebate is now
history?)

We (Canada) are in the midst of a huge surge as well - driven almost
entirely by the cheapest money in living memory and a highly competitive
mortgage market. Australia, OTOH, has some of the highest rates in the
industrialized world (which is part of what is driving up the Australian
dollar), although in real terms (interest less inflation) the numbers aren't
as dramatic. If Aussie rates fall, money will become cheaper; in turn, that
means that buyers can afford a larger mortgage with the same payment; which
in turn drives up property prices.

That said, I agree entirely that the go-go-show can't go on forever (ask the
litany of developers who have crashed on the rocks of economic
history)...but if you could predict WHEN, go to work for the RBA. They'll
have a corner office and a very nice salary for you, since they (and most
other countries' centralized banks) pay a lot of blokes to throw darts at
boards.



in article , A Mate at
wrote on 3/27/04 5:18 AM:

Too True.


In Brisbane they have already started to fall. The REIQ won't admit it yet
for a while; but there are five properties 'For Sale' within 200 m of our
home. They've all been on sale since before Christmas (Yes! December 25th,
2003!!). The market is collapsing, tho' it could be 2 or 3 months before
Real Estate Agents acknowledge the fact!!!



"maxi" wrote in message
...
I wunder when property prices will fall down under?
this cannot go on for ever