30% of Australian House Funding Comes from Overseas

Why? Why do Australians borrow money from abroad to buy overpriced houses from each other?

House prices at risk from Europe crisis

The implications of another meltdown in credit markets are dire. Roughly a third of the funding for Australian mortgages comes from overseas bond markets. Were a third of the big banks' sources of capital to suddenly dry up so would credit for housing markets here. Ergo, price drops.