The old "property prices are about supply and demand" acorn used...

The old "property prices are about supply and demand" acorn used in every bubble market till collapses. yes it could be different in Australia than anywhere else but property is showing itself to be in a nationwide bubble that includes many areas where land supply is not a problem.

Coffs Harbour for instance listed as the 5th most expensive property market in the world wont take long to crash when retirees faced with falling incomes due to interest rate decreases will be forced to sell assets to survive, similarly with Sunshine Coast and Gold Coast. Places like Wagga at number 46 would be destroyed in a commodity crash with falls in the 60% range. Although there might be a hidden land shortage in Wagga? lol

In a major economic crash scenario where Chinese demand collapses for commodities these types of arguments disappear.

It might be different this time ! :)

Here is a good ready reckoner of over priced regions. I expect my ANZ below $10 will take 2-4 years to play out



Th full report here

http://www.demographia.com/dhi.pdf