I think you need to consider different regions and whether they are over priced or not and the reasons. Sydney as an example has been falling - some pockets more than others.
So while the IMF report is proably right, I think there has been a lot of correction already in the largest market of sydney, and form reports it seems the sydney property market still hasnt stopped falling.
As to the government holding back land, were in sydney and melbourne etc is there land within 10km of the centre, close to transport and infrastructure that the govt is not releasing. Very little I guess. It is planning restrictions and people wants that has made housing unaffordable. people start to need to understand that today average sized home which is some 50% bigger than the 70s, cannot be sustained, the same as 4 wheel drives in the city.
