thats what they said in the US before the GFC happened. "real estate is a sure investment".
imagine what would happen if the economy tanked and all these people who bought during the peak aren't able to service their very large mortgages. or maybe a liquidity crunch or even a large increase in interest rates by the rba. lately the banks have been relaxing their lending criteria, so the situation reminds me of the us before the gfc.
i read somewhere that half of the home buyers in syd are investors buying a 2nd, 3rd, 4th property for rental. i doubt these guys would keep these properties if they're underwater. they already have a primary home, they might just want to get out with some of their money intact.
Although i do agree, the situation is a bit different here. due to land and other restrictions, home construction has not kept up with the population kaya malaki tlaga demand.
like i said, im hoping, but i believe that the chance of this bubble bursting is not very high at this point.