"Over the last few decades property has been driven higher by:
- Looser lending standards
- Increase in dual income households
- Lower & lower interest rates
- Private debt expanding faster than the economy
- Strong income growth from a mining boom"
You forgot to mention high levels of immigration and also, the relaxing of the Foreign Investment guidelines. As we all know, the Asian market has grown tremendously in recent years. I read that some 60 million Chinese alone are looking to buy foreign real estate, as they become anxious to secure 'hard assets' outside China.
Also, more and more baby boomers are coming into inheritances from their dying parents. A lot of this will be used to buy investment properties. ( This was the case for me).
With these 2 factors especially, I don't see any decline in property prices.