| As always with real-estate it depends on location. People often point to the ultra high end of the market and claim that because it is suffering massive falls then it is a malaise that effects the entire market. In fact the prices of the very exclusive suburbs has more to do with what people are prepared to throw at the property in order to secure it, and very little to do what the land and house is actually worth. The falls in the top end means there are fewer people around with many millions to spare. Low end falls are often in areas where non-traditional lenders or rented investment properties dominate. The middle of the market will fare much better than either end. Toorak will fall and Melton is stuffed, blue chip suburbs in between will fare much better. |
