"More importantly, it's a view that is not without precedent. Between 2004 and 2009, Sydney home prices remained relatively flat, meaning that prices fell in both inflation-adjusted and income-adjusted terms."
Apparently this concern is becoming more widespread and in my opinion it is a valid concern. But it will not kill my interest in real estate. I am of the opinion that a moderate increase (somewhere between CPI and income growth) of say 3..4% is still attractive if I can achieve a rental return of 5% or more and a long term capital growth of 5% or more as well. Please click here or on picture to read the full article.