The Australian property bubble is speculation that real estate prices in Australia may (currently) be valued at more than some people think they are worth. This may be a real estate bubble. The bubble has been driven mostly by housing within Australia becoming investment tools instead of necessities. This was driven by the powerful real estate lobby, who heavily lobbied Paul Keating, John Howard and multiple other Australian prime ministers. The Australian property market is a significant bubble. It is arguably the biggest property bubble in the world and with Australia's minute population, it is set to burst in spectacular style as taxation changes are set to be put in. These alterations will include the elimination of negative gearing and returning to previous levels of Capital Gains Tax or CGT (the key driver for the doubling of house prices within a span of 4 years as investors flocked into the market).
A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterised by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline.
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“Each Australian is a Ulysses.”
—Christina Stead (1902–1983)
“The diversity in the faculties of men, from which the rights of property originate, is not less an insuperable obstacle to a uniformity of interests. The protection of these faculties is the first object of government.”
—James Madison (1751–1836)
“Then a soldier,
Full of strange oaths, and bearded like the pard,
Jealous in honor, sudden, and quick in quarrel,
Seeking the bubble reputation
Even in the cannon’s mouth.”
—William Shakespeare (1564–1616)