A brief history of Australian house prices

 Australian house prices have increased roughly 160% in real terms since 1980, growing at a 2.1% compound annual rate. Research by Macquarie University and Macquarie Bank highlights that growth wasn't continuous, but concentrated in two major surges: 

1981–2000: Flat Growth
Prices trended mostly sideways as high interest rates and stable market conditions balanced out the market. [1]

2000–2003: The First Boom
Real prices jumped approximately 45%, spurred by the introduction of the 50% Capital Gains Tax (CGT) discount in 1999. 

2004–2012: Stability and GFC
Following a tightening of credit and the 2008 Global Financial Crisis, prices once again moved mostly sideways with minor cyclical fluctuations. 

2012–2022: The Secular Stagnation Boom
Prices surged 55% during this decade due to historically low cash rates and high demand. A brief stalling period occurred around 2018 due to tighter lending standards from the Banking Royal Commission. 

Future Outlook
Macquarie strategists caution that if prices merely track long-term inflation, future capital growth may be much slower than in recent decades. 

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Take home :

For two-thirds of the last 40 years, prices trended sideways, with most of the gains occurring in two short bursts.”

Those bursts came between 2000 and 2003, following the introduction of the capital gains tax discount, and again from 2012 to 2022, driven partly by historically low interest rates.