In one of Australia's top addresses, Hedges Ave at Mermaid Beach, there were two luxury units built in 2006. They were sold for $23.5 million in 2007. In 2010 they fetched $16 million and earlier this year they were both sold for $9 million. This has happened to a lot of top properties. It is far more than 40% down.
Keen lost his bet on a 40% property plunge because he didn't give himself enough time. There are many properties in Oz that have sold for 40% less than they did in 2007, and some of them were a million bucks or less.
The other day my friend bought a place that sold for $900,000 in 2007 for $295,000!
This happened in the 1990s too, but it's far more severe and protracted now. That's because we're in a depression.
I hope Keen was right about 40%, because it could be a lot more. Just wait till next year IMO.
