A number of people have used the property crashes in Japan and more recently the US as examples of what can happen here.
the response to that from the property permabulls are of the nature "that is the US and Japan not here" and now you are agueing we are going to follow overseas trends
So lets compare overseas
compared to other countries many of which have much larger populations and less land, Australia is amongst the highest priced least affordable residential real estate. And the standard of home that can be purchased in some of these other countries is of a higher standard that what can be purchased in Australia.
Many of these other countries with higher populations, less land and better quality homes are now seeing significant drops in real estate values.
is this the overseas trend you are referring to???
then there is this bit "As for who decides real estate must remain affordable"
Maybe the banks who are further tightening up lending practices.
The consumer who must be able to afford their mortgage or rent payments many of whom are already in mortgage/rent stress.
Employers who need access to a pool of workers living within a reasonable distance to the place of employment
governments who will suffer voter backlash and be thrown out of office as a result of people not being able to afford to live.
