It seems to be a regular occurrence that we see in the media a warning from yet another institution or commentator regarding the state of the housing market in Melbourne and Sydney.
In the case of Melbourne it must be remembered that rather than one overall property market, there are a number of sub-markets, each behaving quite separately from one another. The market for high-rise apartments in the vicinity of the CBD is quite distinct from the luxury apartment or townhouse market in the South Eastern suburbs for example. Then there is the family home market which can be divided into various price levels and locations. The significant demand and supply variations within each of these segments make broad marketplace comments largely irrelevant and inaccurate.
I think the warning should be for any home buyer or investor, when buying real estate, to always purchase within your means. Consider possible changes to personal or economic circumstances and always take a long-term view when either buying to live in or invest. When in doubt or in need of reassurance, seek professional advice.