http://www.theguardian.com/business/2014/feb/14/australia-housing-bubble-ready-burst
We have spoken about this before but this time I found the link and the impressive form of its Author
Can we avoid a bubble? forever?
I can only judge on my state NSW and houseing not out of the ordinary selling for a million dollars.
And the strange thing is, in part Chinese investing in our housing while their country has thousands of brand new empty apartments.
So it is my view in time this prediction just has to come true.
Housing in Australian city,s is pricing low and middle income family's out of ever owning a home.
And investment in houses may face difficulty's sooner than we think.

And investment in houses may face difficulty's sooner than we think.
Belly,
investment is not good thing long-term especially housing. Need a home, buy a home. Don't need a home let someone buy who needs it.
The evil that is investment is coming home to bite us in the butt. Ask yourself this, why don't those investors invest in our young ? Well, those young will before long turn around & tell us to go & get .....
Rightly so but the trouble is that those of us who do care get dragged down as well.

Dear Belly,

Here's an earlier link to the one you've cited -
and it shall be interesting to see what does happen
with the prices of housing in this country. I personally
feel that predicting the future is a risky business at the
best of times. Circumstances can change quickly.
If this country continues to lose industrial productivity
and unemployment rises as indicated by recent figures,
logic would dictate that average housing prices would drop
in keeping with the affordability of workers.

http://www.theage.com.au/money/borrowing/us-experts-claim-property-bubble-is-set-to-pop-but-have-they-missed-something-20140128-31jaz.html

Belly, not a dig, but I'm never sure what anyone is talking about when they mention low & middle income families.

Please tell us what to you is the actual income of each group you are referring to.

I was tidying up a house yard today and the neighbour came in to make me a very enticing offer. My answer was no and we agreed that the inner city niche it is in will continue to have steady growth.

He and his wife (both professionals) with their two infants are well representative of the families who are buying. We also have an interest in some apartments/town houses that will sell like hot cakes because they are well situated, luxury and are uncompromising on privacy, space, fittings and comfort.

I don't know who the 'investors' are who are supposed to be buying and forcing up prices. As far as I can see and I have plenty of other friends who would say the same, there needs to be some understanding that there is no one property market in Australia, there are many and to generalise as this Yank did is fraught with problems.

The prospective buyers I encounter have the money to call the shots and they know what they want. They don't want the sort of homes that dad and mum bought, they want lifestyle and that requires lots of features that cost money. Not huge homes but clever design to complement a chosen lifestyle.

It is bollocks that 'investors' are forcing up prices. No investor could buy most homes on the market at any time and make money. Niches maybe but not to buy and hold because that is far higher risk than the paltry returns (if any) of rentals might support.

I suggest that a lot of the bubble talk which has been going on for decades is just parlor talk to fill in time and columns. Only a complete idiot would put off buying his/her desirable, well-located property. Good property will never be available at a discount. The properties that are discounted always have negative features, most often to do with location.

onthebeach,
In our area rents & property prices are actually in decline since the 'pay any price for public servant's accommodation' crowd was replaced by the more accountable Coalition.