My opinion only as a property investor. Melbourne and Sydney went on an insane property bubble burst that had no basis except cheap money and migration. The RBA was reluctant to raise interest rates as the economy was not firing. So the authorities changed rules, tightened lending criteria and tried their utmost to stop peoples stupidity. The problem was that the bubble was only in Melbourne and Sydney the rest of the country particularly WA was struggling.
Now the end result the Banking royal commission has added to the problem with tightening lending criteria and pressuring the banks.
The end result Melbourne and Sydney property markets are deflating and cold either slowly decline and flatline for a decade or rapidly fall another 20%. As you say the broader economy is doing ok WA is starting to recover and other states doing ok but their is a credit squeeze on and people are hesitant to buy.
Interestingly WA treasurer Ben Wyatt has written to the banking and RBA suggesting they pull their f/ heads in and wake up that Melbourne and Sydney are not the only market in Australia and time to loosen controls.
Add to the mix the likely Shorten win at next election with a leftist policy of attacking investors and it is no wonder property investors and share investors are retreating. We all pay the price for poor and ineffective leadership
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