i lived in latrobe valley in vic around the time geoffrey kennet privatised the power industry in vic. Thousands laid off, and those with trade quals got big packages and left for jobs elsewhere. Over the course of about a year house prices tumbled. eg four bed, rumpus, pool, fantastic views, 5 year old houses on half an acre selling for about 25% less than they had sold for a year earlier. It was pretty amazing. So yeah, house prices can fall in australia, and big time, given the right (wrong) conditions especially if unemployment jumps.
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