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This is precisely what happened in inner city Melbourne from 2005-2007 (the so called ''mini-boom"), with a plateau/correction in prices in 2008 and generally stable rents in 2008 (dropping in some pockets), and in 2009 another surge in prices to new record highs, but with rents not moving up so...

(Thanks for the link Minx...) 6.70% pa was the SVR at the time (1998)... not sure if there were discounts on the SVR then though... Not sure what point I'm trying to make, but I need to ponder what you just said.

Evan do you know what were variable interest rates at the time?