I haven't read the previous posts on this thread however from my own experience I can give you a snapshot of where the Perth property market is right now;
My wife & I sold our previous home in mid 2006 for $800K & at the time this did seem likely to be the top of the market, not that was our sole motivation, however prices did continue to climb for some time after this as we all now know.
The same property is presently for sale once again by the same owner that purchased it from us. It was placed on the market around 2-3 months ago @ $959K however it's now advertised as; from $889K!
To put this example in complete perspective, the property was in fact purchased by the current owner for a small buiness to operate "from home" rather than a private residence. So it was largely an investment IMO rather than a palce of residence...
To say that the return on his "investment" has been below par is an understatement IMO - please do the calcs yourself as proof. And it hasn't sold yet!
