The Australian Housing Bubble

In the 2000s Australian house prices were overvalued or certain housing markets in Australia were frothy. The Howard government's decision to half the rate of the capital gains tax in 1999 was the trigger for some of court, whatever you want,. Bubble evaluation, etc. But if monetary policy is effective and the Reserve Bank is successful in keeping inflation within the range of two to three percent on average over the site then there are going to be many times it would be rational even to expect that house price growth will result in a very substantial real gain.