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Putting my bear hat on for a minute, it strikes me that a 2010 rent is yielding around 6.2% on the 2002 purchasing price, which is still lower than the interest costs on a mortgage at current rates. Assuming that the cost of renting and buying should be broadly similar, then that suggests...

Boz, I'd agree that you should be able to pull a certain amount out of these numbers with pretty elementary maths. On second thoughts what struck me was: The amount borrowed for housing by owner occupiers seems to be growing at a constant rate. But I can't see it continuing to grow at 10%...

Interesting chart - thanks Shadow. I wonder what the neutral level of credit growth is for housing. It's not that much higher than it was in 2008 (when prices were falling), and yet most of Australia has double digit rises at present. Investors seem to be coming back, but not in huge numbers...