What will cause land prices to fall?

Australia isn't unique in experiencing a property boom but while rising land prices might be a global problem, they are a bigger issue here than almost anywhere else.

Despite the important role that residential property plays in modern economies -- often accounting for a majority of household wealth and in countries such as Australia a majority of banking assets -- precious little is known about the sector’s long-term dynamics.

Naturally that’s understandable. Collecting property data was until recently quite difficult and homes are unique assets requiring complex statistical methods simply to derive a single house price index. 

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