In regards to government it is quite interesting. Government generally do not care that much about the long-run as problems caused by the current government are often pushed onto future governments. That future government then blames it all on the previous governments and claim that they are doing a good job at resolving these problems.
High house prices are reducing disposable income, therefore could result in less spending and a reduction in GST income. What is happening in many cases is that people are able to maintain their current levels of expenditure by working more hours and getting additional part-time jobs. People are also making more purchases on credit cards. In the long-run, none of this is sustainable.