the 1.2% is correct, i dont doubt the study if that is the Shiller one, but i do think it is misrepresenting of the present time.
from 1880 - 1940's there was negative growth, thats a 60 year time period with negative returns, if we look at the last 60 years there has been the largest growth ever in australia. property is cyclical, how long the cycles last is debatable but from what i have read most people agree the it is a nature of cycles, degrees of ups and downs will always vary
in my opinion, i would look at the property prices starting at say 1960~, we havent had major wars since, there is some time before the 1980's stock market issues & currency problems, it encompasses the GFC and effects of it and some 'normal' times and also takes into account melb/syd as growing global cities.
a 60 year period thereabout, i dont have data to calculate those figures (easy to get those numbers, ABS etc) but i would look at that number and have that as an estimate for melb/syd. again, comparing like cities to eachother just for australia. In my opinion, the last 60 years i see as being more relevant than the last 140
