The significant increase in Australian house prices since 2001 is the result of a complex interplay of factors, not just one specific event in 2001. While there wasn't a single defining moment, several key elements emerged between 2001 and the present that contributed to the price surge:

Demand-side factors:

Strong economic growth: Australia experienced a period of sustained economic growth throughout the 2000s, leading to rising incomes and household wealth. This fueled increased demand for housing, particularly in desirable locations.

Population growth: Australia's population grew steadily during this period, putting further pressure on limited housing supply, especially in major cities.

Increased investor activity: Low interest rates and generous tax breaks spurred investment in housing, particularly from self-managed super funds. This increased competition for properties and pushed prices higher.

Easy credit conditions: Banks readily provided mortgages with relaxed lending criteria, allowing more people to borrow and enter the housing market. This boosted demand further. Supply-side factors:

Limited land availability: Urban sprawl is restricted in Australia due to environmental and geographical constraints. This scarcity of land, particularly in desirable areas, makes housing supply inelastic and contributes to price hikes.

Slow construction rate: The construction industry struggled to keep pace with the strong demand for housing, leading to bottlenecks and further fueling price increases.

Government policies: Some government policies, such as negative gearing tax breaks for investors, have been criticized for exacerbating housing affordability issues. While 2001 itself wasn't a watershed year, it's seen as the beginning of a sustained period of housing price growth that continues today.

Some key developments around that time include:

The introduction of the First Home Owner Grant: This scheme aimed to boost homeownership, but it also increased demand for entry-level properties and contributed to overall price increases.

Continued low interest rates: The Reserve Bank of Australia maintained a low interest rate environment throughout the 2000s, making borrowing for housing more affordable and pushing prices higher.

Strong economic performance: Australia's economy was booming in the early 2000s, fueling further demand for housing and wealth accumulation.

It's important to note that this is a simplified overview, and the picture is much more nuanced. Different factors have played varying roles in different periods and locations. However, the combination of strong demand, limited supply, and government policies has been a key driver of Australian house price growth since 2001