This is a great question, I recently visited Australia where property prices are absolutely ridiculously inflated, they appear to be in a slight reversal curren

This is a great question, I recently visited Australia where property prices are absolutely ridiculously inflated, they appear to be in a slight reversal currently; However, people are borrowing and paying millions (AUD) for shacks, just because they're near some water...yes the area is nice but these are old houses which are not really near public transport, good schools, hospitals or other amenities. Some of them I saw were built in a flood plane. Why? What's driving this? Was it the historically low interest rates, which have now just rocketed in Australia back up to > 5% ? Who will fuel the next property boom to pay for it? Feels almost like some apex has been reached and it's going down from here. Especially as like others have said, it doesn't seem like the developed world is growing rapidly enough to sustain the demand. Immigration might help fuel more demand, but then pressure is taken away from real estate elsewhere, which would incentivize people to stay put, besides, it's not like immigrants often land in the developed world with 2 million dollars to spend on a shack in a remote location. It's fascinating to say the least. Interesting times ahead for property speculators and I guess, everyone...