A report on Residential Property Prospects, 2011 to 2014 from BIS Shrapnel has forecast a more positive outlook for residential real estate. BIS reckons property prices are unlikely to fall dramatically and forecasts some of the strongest growth for Perth and Brisbane which have been laggards in recent years. The outlook is predicated on strong economic growth and low unemployment as the impacts of the resourcces boom flows through.
There is always a lively debate on whether Australian property prices are reasonable or an over-valued bubble. The negative perspective is typically well represented at Macrobusiness. The positive by Christopher Joye from Rismark / RP Data at Aussie Macro Moments. They are both among the best Australian economic blogs so you can take your pick depending on what you want to believe.
Joye has posted a number of interesting real estate charts today including this one on the higher volatility of more more expensive property so buying in a rich suburb is riskier. This seems to correlate with most recent Cairns land valuations where some of the most resilient suburbs were in the southern corridor.