I think Australia and especially China have the potential to...

I think Australia and especially China have the potential to have a housing bubble. Prices are high now sure, but maybe not at bubble stage though IMO.

However, if and when US property prices return normal levels, and US unemployment begins to fall, Australian property could unravel and so could every other boom property market. The reason is interest rates and inflation.

China is creating enough stimulus for Australia with a lack of US demand as it is now. Think about when US demand returns- China will have in turn have a higher demand from australia. So, the potential is still there for great gains in mining, property and business in general which is why we are not at a top. The flipside of all this is massive inflation which I see as inevitable as the US recovers. We are in the target zone or near the top of inflation now as it is, just have a think of the huge upside to inflation, and hence I.R's as America recovers, which they are still yet to do. THAT could be a tipping point for a delayed property market fall in non-US currently stable, steady well to do countries.

Which is why a hold/buy in property and shares still should have great benefits in the next say 12-18 months, but keep an eye out for US unemployment rates IMO.