The limitation is work. People will commute one hour each way, even two hours each way for a total of 4 hours each day. Beyond that you will get very few people who will do that.
This is another requirement for property to drop in value, work needs to decentralise. Many years ago I remember IBM set up their centre in a country town called Wangaratta. That was a good thing but it didn't work out and the plant was closed down. We need more companies to create work outside of the big cities.
I once read a Sci-Fi story where people had teleportation units in their houses. You could key in a number and you would instantly teleport to the location you wanted.
If tomorrow they announced such an invention I would say that the party is over for property growth as you would be able to live anywhere and still be at work on time everyday.
If knowledge workers end up working from home all the time over the net then that would allow them to live anywhere.
Unfortunately for the masses they will be tied to commuting for a long time yet. And as long as that is the case property investment will be a winner.
Anyway, I hope I have amply conveyed why I believe we won't be seeing big drops in property values in the major cities and especially in the renter suburbs.
