The Board of the RBA has taken this into account in its monetary policy decisions and as a result, the cash rate is lower than it otherwise would have been. See Lowe P (2012), “What is Normal?”, Address to the Australian Business Economists Annual Dinner, 5 December. BIS central bankers’ speeches  1  for fear of a capital loss.
But again, not all markets across the country are in the same boat. In Melbourne, for example, there is some question as to whether supply has moved ahead of demand, particularly in the market for apartments in the inner-city area.