I wonder what effect the buildup of presumably unused, stagnant real estate inventory will have on markets like Australia's. I would imagine a pricing bubble, followed by a massive crash -- the extent of whose damages depends on the extent to which the real estate has been derived, repackaged, and traded with other financial institutions.
An oddly familiar pattern, and one that should give us pause.
(Sorry for the delay - I never think to check comments for replies.) In this case, the apartments do seem to be occupied. But Australia has had a housing bubble for some time IMHO. Government policies like negative gearing (tax write-offs for investors where rent doesn't cover the mortgage - who thinks of these things?!), 1st time buyers grants, stamp duty concessions, etc have kept prices from falling.
Sydney in particular has a very tight housing market due to lots of people moving in but not nearly enough apartments and houses being built. This has kept prices up, but there will have to be a drop at some point. The only question is when, not if, and how much.
An oddly familiar pattern, and one that should give us pause.