joker the pundits have been saying this for so long now that...

joker the pundits have been saying this for so long now that it's starting to sound boring, not to mention wrong.
The one factor that would have a serious impact on property values is interest rates.
The only real underlying reason to increase rates is a breakout of inflation.
And this is where most economists are getting it wrong.
Inflation is no longer a problem. The strustural changes that have taken place in the developed world economies, due mainly to productivity gains brought about by the technological revolution that we find ourselves in the midst of, have ensured that for the forseeable future (I'm talking possibly decades) inflation is not a problem.
I don't always agree with that depressing mushroom Ross Gittins but if you read his column in today's Sydney Morning Herald, you will get a serious insight into the dramatic changes that are taking place throughout the developed world. The new catchword is Deflation not Inflation.
If he is right and I suspect he is, interest rates will remain as thay are today or lower, for quite some time to come.
And this, my friend will underpin property affordability and a growing property market.
The only other variable is DEMAND and that's underpinned by higher immigration numbers.
That's the way I see it unless someone can convince me otherwise.

Please note, medium density residential approvals are up 83% for the last quarter...not a very good indicater of a bursting bubble.

nq