People – don’t you see the market is cyclical. Always has been and always will be. Of course everyone understands this but i think people sometimes forget.
We’ve enjoyed great price hikes over the past decade and squeezed the life out of the market. Yes, the credit lines have stalled but they will return – how else will banks make enough money to pay their debts!
What really surprises me, and still does, is that people from all around the world, were prepared to pay silly money for poor quality apartment blocks in locations that are less than desirable.
Oversupply and poor quality did not send alarm bells ringing and yet many continued to buy off plan thinking that the good times would never end. Did they intend living in these ‘investments’ – of course not – they thought some other fool would and pay them for the ‘pleasure’.
Good property in good locations continue to hold much of their value and negative equity is less of a concern. The market will return one day – but don’t expect the prices of overdeveloped apartment blocks to return to the highs of recent years.