housing to devalue 40 to 60 percent, page-32

I'm with lord elpus here roma. You can't pick and choose individual examples to make a broad based claim. Basically most of the claims about the fundamentals are wrong. There is a chronic housing shortage in Australia (David check out the REIA and REI in individual states for their opinion on the property market), strong employment, historically average interest rates with fixed rates lower than variable. The only thing wrong is that prices of property are high but still generally affordable proven by the fact that most owners are affording them - Australian home ownership is at around the typical long term levels.

The Aus market is fundamentally different from the US. That doesn't mean we won't have corrections but we won't go through what they are right now. (By the way in the US a number of regions are enjoying strong growth in property prices).

I probably won't contribute more to this debate because its pretty pointless. There's never been a broad correction of 40-60% in the Australian property market, what about now is likely to change that? Long term property investors aren't going to sit around on hoping that they can pick the general bottom of a market which is highly segmented anyway.