Passive1 is saying that (aggregate) property market declines are smaller in comparison to aggregate equity market declines. So the relative performance is good. In an environment of credit deflation (anyone still believe it isn't happening in Australia? And notice I said 'credit deflation', not 'deflation' ) that may be an OK metric to rely on, but not for me personally.
Capital preservation is the new normal, with defensive portfolios now the way to go. Sure, property fell less than the equity markets, but sovereign bonds, cash & gold are whipping absolutely everything (Greece, Spain, Ireland, and other endebted sovereigns excepted).
