the government has just established a bailout fund of more than a 1/3 of a trillion dollars for residential real estate , so commercial real estate would be a another 1/3 of a trillion I would imagine, you certainly wont have one bailout without the other
in order to preserve the countries wealth, investor welfare for real estate needs to be cranked up to attack the problem from the front not the "back", once the horse has bolted. Otherwise capital will be redirected into impoverishing activities such as building factories that produce and export consumer goods.
its pretty clear that most of us would rather be living in Australia than China, that's reflected in the price of real estate here and the well above inflation returns of real estate investment.
Thats why local government need to keep new land releases in check so each block is sold at a higher price than the next. Also home buyers grants increased to maintain a percentage of the purchase price not some nominal amount of say 10-15k, which is plain silly.
The RBA is doing its bit right now, its pointless keeping money in the bank as the returns are now negative. Its far better to be paying ever increasing prices for the same asset and utility, the "wealth effect" as they call it. Also the upside of personal debt rather than savings is the ability of an individual to qualify for welfare as well
