While I am a property bear, the courier mail article is another example of typical sensationalist gutter journalism. For example, the example provided of huge discounts in Hinchinbrook make absolutely no mention of the fact that the properties being discounted may well have been damaged in the 10m tidal surge experienced there during cyclone YASI on 2 Feb last year etc etc. Yes prices are off, and yes there are substantial discounts to be had in distressed liquidation sales. I myself have benefited from this by purchasing from liquidators with low ball offers and discounts of 35% from off the plan prices.
How low are we going to go? My opinion is that there will be a combination of lower prices and wage inflation over a number of years until property/income ratios are more in line with world averages (i.e property becomes affordable)
