Demand for housing certainly exceeds supply in Australia.
However high interest rates (9.6% SVR) combined with anaemic wage growth over a decade of massive house price inflation (thanks to little Johnny the bosses friend ) have made affordability a huge issue - hence all the stories about households that are in severe mortgage stress.
FTBs are also highly disadvantaged by the grossly unfair negative gearing tax advantages granted to investors.
I can’t see how house prices are going to “boom” or “explode” as they are already very expensive and people cannot afford them as it is. I think Australia actually came out worse than Ireland in the Demographia survey for global housing affordability due to the higher interest rates & lower wages, despite nominally lower prices.
I can comment on Sydney.
Western Sydney is already suffering hugely with repossesions and people really under pressure with repayments. Not a place to live (Some areas are no go). The inner west is nice enough but the real west is a different world, to be seen to be believed.
Eastern suburbs / North / South are ok’ish. Eastern suburbs is where you want to be. Price falls will be minimal if any no matter what happens. Renting is very hard there also. Usually if a decent rental comes on the market you get to view it with at least 10 other parties for half an hour and litterly bid for the rental property.(I am not talking backpacker places for those who did their year out there).
Australians historically rely on second properties as part of their super fund (equiv to pension here).
I spend 2 months of the year in Aus and this is based on my last visit in Feb.(Am Irish but have Aus citizenship since 2005)