Interest rates declining drives up property prices. Speculative Property prices are driven by debt leverage...as explained in the article you quote. Fiat debt leverage. The rent on money has been steadily declining since the late 1980s and so property prices have been rising upon the increasingly cheap fiat leverage that enables. Today the rent on money cannot go much lower nor higher- thus that cycle of the last 35 years is over. Property price stagnation is the best you can expect from here onward - property prices are already declining in real terms here in NZ.