will rents fall, page-22

redmond, I don't believe Australian banks have been as lax as their foreign peers in terms of lending criteria...of course we also have some low doc loans, but by and large banks have been fairly prudent, nor are they exposed to mortgagees just handing in their keys and walking away. I think this is relevant. I agree interest rates were artificially low post 9/11 (and the tech wreck) to keep the asset bubble inflated, and unfortunately this has been the consequence, I do not accept that Australia faces the same issues...compare home loan rates in Australia between say 2002-2007 and then the US.

As for the UK, London is massively exposed to the financial services sector - I don't think we can extrapolate their experience to Australia for this reason. The City has shed thousands and thousands of very high paid jobs and obviously London property has been hammered accordingly.