Have you guy know what happened to Hong Kong- The prime example of property market bust. Begin from 1999, around 60% of property value have gone and that leave with ten of thousand of home owners with such a big debt that they can only possible be pay off by the age of 70(If only they can stay employ). What even worst is the fact that they are stuck as no one would buy their property and the only way out would be declaring bankrupt. Indeed most people who used to hold 10 of millions AUD worth equity(hundred millions of property) found them drop death by year 2000 who were once the top investors of HK.
Due to my conservative nature, I withdrawn 80% of my investment by 1998 and that saved me a big time. However, the remaining 20%(my PPOR) that I held still costed me half of my profit from investment. That is a lesson that I shall never forget.
With Sydney, should we are considering only the OZ base purchasing capacity, the market should long be death. However, as an international city, we are still in a fairly favourable position as compare to the rest of the world, given our prime properties(800k+) are still fairly cheap.
I say there are at least 2 markets which basically divide between local based and the international market. Based on recent statistics, local based market is coming to a halt while the upper market segment would still have a fair bit to go until the doom day eventually come.
