Verily spoken!
We have very short memories....
It wont affect the top end. The top end got marginally hit when :
1) The biggest global financial crisis hit the world 07/08
2) ASX fell almost 50%
3) Interest rates were 350 basis points higher than today
4) There was doom and gloom written in every nook and cranny
5) The domestic growth slowed dramatically, China stopped buying dirt and started stockpiling it, jobs market experienced massive downturn and basically anything that could go wrong did go wrong.
With all of the above, the top end in most metropolitan cities overall had a 10% on-average softening (which has already been recovered mostly).
When all the above didnt result to a big dent in the residential property values (let alone top end which could be most resilient) why do we suddenly believe that sky is going to fall at the first movement on an interest rate rise, when:
1) Stock markets are up 50%
2) Interest rates at historical lows (still)
3) Job markets strengthening
4) Domestic economic growth improving
5) China again buying our 'dirt' in significant quantities
6) Globally markets are on their way up (across developed & developing countries)
The top end if anything will keep going up. No questions.
Harris