There are few things of the common knowledge:
1. Property booms happen in the low interest rates environment
2. Interest rates become low in the low inflation environment, i.e. when prices of goods and services do not grow much
3. Australia is a vast country. Prices of goods and services largely depend on the cost of transport. Cost of transport largely dependent on the cost of fuel.
This is how cost of fuel fuels the property boom here.
Fuel now drops to the levels seen 10 years ago. This is what media says. Problem is that dollar is now almost twice as cheap as it was ten years ago, therefore in real dollars price of fuel went back almost 20 years.
In economical terms it simply means that Australian economy is now entered very dangerous zone - DEFLATION is written on the wall 3 meter high letters. Which simply means that dropping current rate of 2.5% to 0 probably will not be enough to save us from deflation. Reserve will have to resort to much more quantative easing measures than simple zeroing of interest rates.
What usually is done in situations like this - is stimulating lending by the banks - which means reversal of tightening of lending standards that Reserve engaged themselves into.
What we are going to have as a result - The Mother of all Property Booms.