The big question is 'are we like the UK and US?'. Can our...

The big question is 'are we like the UK and US?'. Can our economy be compared directly with these countries just because we speak the same language and have roughly the same government style. Surely we should be compared with countries closer to us now that the world economy has shifted towards Asia. Rather than relate wages and house prices only, should we include foreign investment in housing. Spanish house prices are not linked to Spanish wages but the buying push from European countries. We are seeing the same here, even UK people buying holiday houses which has no relation to Australian wages but rather the exchange rates. What will happen when the Chinese become tourists as the Japanese were; only the volume will be 10 fold larger. What has that to do with Australian wages? very little, just the ability of foreign visitors to pay higher rents and accomodation charges. Best to keep a wider view of the situation and see things first hand rather than press articles that may not have been well researched.