Market too high even with a drop

I agree with SK. There is a lot of downward momentum in the market at the moment, there is no need to rush in and catch falling knives. Im waiting for the market to fall back to realistic levels before I consider buying. However, now is the time to start looking at properties to get a good early feel for the market.

Went to an agent in Mid Levels last week to see some properties in the area. Was told that the prices are 'right' What that means to me is that prices in the previous year or so were obviously too high, but the market hasn't dropped significantly enough to call it 'bargin' territory just yet. So I politely told the agent to call me back in a few months and let me know if there are any bargins to be had then.

I think the market is more likely to get worse before it gets better. The rental and capital values will continue to decline across most of the region mainly because of the slower occupational and investor demand together with the rapid recession. Although many regional markets are most likely to see a big correction in values, underlying long-term drivers and economic growth prospects should ensure that most real estate markets in the Asia-Pacific region will return to the growth phase some time in 2010-2011.