RBA - 40% house price fall, page-3

That can only apply to areas where the prices are still inflated because there are basic costs, such as the house, that are not negotiable. That means the 40% fall must all come out of the price of the land so if it's 50% of the cost of the property would need to fall by 80% or if it's 40% of the cost would then be free.
New housing would stop as buyers switched to existing homes unless the land was almost free.

The question should be, why is the RBA talking down the housing sector?