I agree with most of what the Reserve Bank of Australia (RBA) findings in respect to the so called Property Bubble in its research paper titled Asset Prices, Credit Growth, Monetary and Other Policies: An Australian Case Study which addresses the so-called housing bubble in Australia. The paper concludes that the ratio of house prices to income has been reasonably flat for a number of years.
I have been of the view that any perceived bubble is a long way from bursting. The market has recently settled down following the huge catch up in the past 18 months which were fuelled by government incentives and low interest rates.
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