The logic for holiday houses falling first and hardest is that they are discretionary. For most people the hh is at least the second property usually a leveraged buy. If the budget tightens or even if people want to build up savings the hh is an obvious place to start the liquidation process.
Also given the holiday houses are normally surrounded by other holiday houses the local market is more "efficient" than suburbs where most houses are held on sentiment more than on rationality.
Re houses prices crashing: if house prices stay steady for the next two or so years and say precious metal prices double then in relative terms property can be considered to have been a poor investment (all other things being equal) but the holders of those properties probably will not feel bad about their "relative" loss. The thing about house prices actually falling in nominal terms is that not only do the holders of property lose wealth but they feel bad about it as well. It is only the latter circumstance that will make it onto page 1 of the tabloids.
