In one of Australia's top addresses, Hedges Ave at Mermaid...

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.