To read it click here. And for another interesting article to keep a balanced opinion click here.
Here are my conclusions:
Correction at the high end -quite likely and possibly severe.
Correction at the low end - rather unlikely and if so then only marginal.
For me the question is at what point will most people loose their desire to own property and exit the market ? Where is the pain threshold ? In my opinion property remains attractive even with a worst case long term growth of zero in real terms. Why ? Because the asset returns 4..8% cash flow and its value keeps up with inflation. On a 500k property a CPI of 3% would translate to 15kpa asset price rise pa. Hence I would still invest into low end property, even now in 2011.