Traditionally properties closest to the CBD drop last, if the downturn continues they will be hit.
But we have a very curious market in that there are still a lot of people who have money and are prepared to spend it, so if an inner city property becomes available at say a 5 % discount and it's what they have been looking for, and it is of good quality it will sell.
Although I am a bear (at the moment) I still believe that there are properties that are worth buying as an investor and as a permanent home. There was a property for sale recently which I think I have missed where the owner has dropped 25% from his 2011 purchase price with the chance of a S/D The block is 1400 M2
As always market going up or market going down there are good buys if you are careful to not over extend
