It depends on whether you are looking at property as a 1-3 year play for purchase or a 10 year play.
Personally over the next 12-18 months australia will see several things that you have not yet experienced, but will as the signs are there compared to what has happened in every other western country and is about to hit you by the end of Q1 FULLY. These will push property prices downward.
Those things are: -Retail sector to shed tens of thousands of jobs -Small business sector struggle to refinance and many small businesses go under -Hospitality sector will suffer and already is as international tourist numbers have dropped due to credit crunch especially once autumn starts. -Tightening of credit from banks and LTVs due to increasing bad debts and support for balance sheet -Mining sector having further lay offs as China takes alot longer to take off due to stockpiles of commodities already in China and cheaper commodity prices directly from African mines and full reliance on western consumerism to get there economy going again.
There are many other reasons but to be in the experience of it at present in the UK and being a property owner in both the UK and OZ i feel the real downturn in property prices will commence once unemployment significantly rises in oz - which will happen unfortunately.
