I would be pleased with annual capital growth of 4.6%. I think this article used the wrong statistic to back up its argument.
However, it would be interesting to see what housing prices would be like with interest rates at a more normal 7%.
To put that in perspective someone with a million dollar mortgage in Sydney would be forking out $1,346 per week in interest payments! To support payments of $1346 per week and without putting yourself into mortgage stress (greater than 30% of income) you would need a income before tax of $336,960!
