chart guide to the melbourne property crash, page-3

Thanks fbx258, while I personally see a 50% drop in nominal terms unlikely, relative to rents I think we could see a drop of that size (from peak).

For example yields for Melbourne houses were 3.34% in January 2011 according to Residex:

http://blog.residex.com.au/2011/02/24/australia-as-a-whole-2/

$593k price
$380 weekly rent

A 30% drop in median price is $415k. And then perhaps we see rents increase to $530 per week over the few years (following the crash) while prices stagnate/crawl along the bottom. That would return yields to 6.6% or around double what they are now (prices has crashed by 50% relative to yields).

I also do think that we will probably see some suburbs hit 50% off in nominal terms, but it will be one heck of a crash if we see that across the entire capital!

50% off average would tend to indicate some suburbs perhaps dropping by only 30% and others by maybe up to 70%... would be interested in any locals opinions on suburbs that you think will have dropped 70% from peak??