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)
“It is a well-settled principle of the international code that where one nation owes another a liquidated debt which it refuses or neglects to pay the aggrieved party may seize on the property belonging to the other, its citizens or subjects, sufficient to pay the debt without giving just cause of war.”
—Andrew Jackson (1767–1845)
“If the bubble reputation can be obtained only at the cannon’s mouth, I am willing to go there for it, provided the cannon is empty.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)