"House price build-up but no bubble" screamed the Financial Review yesterday. According to the latest RP Data figures, residential property prices rose by 14.9% in Melbourne, 9.9% in Sydney and even 6.1% in Perth. On an annualised basis, Melbourne’s prices rose by about 18%. Given that economic growth is currently sitting on a somewhat less rampant 0.3%, it would be fair to suggest that housing prices have long departed from any rational basis.

While leading financial rags and real estate agents vehemently dismiss the notion of a residential property bubble, evidence points to the contrary.